Jugnu20

Markets are in the last full trading week of 2025, and with Christmas Holidays approaching, Wall Street’s sector rotation is sending signals that crypto traders cannot ignore.
Capital is moving away from crowded Big Tech and AI trades into financials, industrials, and materials, reshaping liquidity conditions that often spill into Bitcoin, Ethereum, and altcoins. For investors looking to position themselves ahead of 2026, these flows could offer critical clues about where risk appetite and liquidity may be headed.
Wall Street Sector Rotation Signals Potential Catalyst for Crypto Markets in 2026
Recent market data highlights the shift, with materials surging 4% last week, financials gaining 3%, and industrials climbing 1.5%. Meanwhile, communication services and technology are lagging.
Deutsche Bank noted tech’s first back-to-back weekly outflows since June, signaling fading AI euphoria.
In an interview with CNBC, Chris Toomey of Morgan Stanley Private Wealth Management described this rotation as “meaningful.” He cited broadening opportunities outside the MAG-7 and tech-adjacent names as key drivers heading into 2026.
Why Crypto Traders Should Care
Historically, sector rotation in equities correlates with increased liquidity seeking alternative assets, often benefiting Bitcoin as a proxy for risk appetite.
The current “run-it-hot” macro narrative, driven by lower interest rates, stronger growth expectations, and seasonal liquidity around tax season, creates conditions favorable to crypto, even amid volatility in traditional markets.
Year-to-date, crypto underperformed relative to equities. Bitcoin has declined by roughly 8%, Ethereum by 12%, and Solana by 33%. Meanwhile, the S&P 500 and Nasdaq gained 15% and 18%, respectively.
Despite this lag, analysts see potential for a sharp rebound in early 2026 as macro tailwinds align and investors reposition for the new year.
Five key drivers could support a Q1 2026 crypto rally:
End of Fed quantitative tightening: Reversing QT would restore liquidity, historically a catalyst for Bitcoin rallies.
Anticipated interest rate cuts: US rates may fall to 3–3.25%, improving conditions for growth and alternative assets.
Short-term liquidity injections: Treasury bill purchases and technical buying could bolster funding markets.
Political incentives for stability: Midterm elections incentivize policymakers to maintain supportive market conditions.
Labor market dynamics: Signs of job market slack could allow the Fed to remain dovish, sustaining liquidity flows.
The rotation is also changing the equity market’s risk profile. Investors are favoring lower-beta sectors such as healthcare, financials, and consumer discretionary, while high-beta tech momentum trades cool.
Equity Moves Offer Clues for 2026 Crypto Volatility
Tesla’s recent move on autonomous robotaxi tests exemplifies short-term market swings that are captured in sector indexes but often spill into crypto via correlated risk flows.
According to Toomey, the broader takeaway is that trading decisions dominate short-term markets as year-end approaches. This creates range-bound conditions and increased volatility in crypto.
Investors who track equity flows may gain an edge, especially as Wall Street reallocates for 2026 and crypto markets preemptively respond.
Crypto analyst Alana Levin introduced a framework for crypto growth, using three compounding S-curves: asset creation, asset accumulation, and asset utilization.
This approach spans all macro conditions, stablecoins, exchanges, on-chain activity, and frontier markets, key factors for crypto adoption and price action as sector rotation continues through 2026.
For Bitcoin and altcoins, the last weeks of 2025 are not just a quiet holiday window. It is a critical preview of how liquidity, macro sentiment, and investor positioning could set the stage for a potentially historic start to 2026.
A combination of macro tailwinds and strategic rotations may drive significant upside across digital assets.

Embedded finance has moved from payments into lending. Trading is the logical next step, and platforms that force users to hop between providers to access different asset classes are losing ground. Patrick Murphy, Managing Director for the UK and EU at Eightcap, argues that multi-asset access has to be built in from the start if platforms want to keep users engaged.
But meeting that expectation isn’t as simple as adding new instruments. It raises deeper questions about infrastructure. How do you embed regulated derivatives alongside crypto? How do stablecoins fit into cross-border settlement when banks still operate on legacy rails? And what happens when tokenized assets start functioning as collateral across both traditional finance and DeFi?
In this conversation with BeInCrypto, Murphy breaks down how Eightcap is approaching those challenges, from embedding compliance into its API stack to preparing for a world where Bitcoin, equities, and gold increasingly move on-chain.
​​BeInCrypto: Eightcap Embedded allows brokers, exchanges, and wallets to integrate multi-asset trading through a single API. What specific market signals or client needs convinced you that embedded multi-asset access would become the next frontier in platform engagement?
Patrick Murphy: “When we looked at where the market was heading, a few things stood out. Across brokers, exchanges, and other fintechs, we saw a convergence of client needs. Users wanted the ability to move between crypto, forex, and commodities seamlessly. Platforms were losing engagement when users had to leave to access different asset classes, causing a retention challenge. If you couldn’t offer multi-asset exposure natively, then your clients were going to trade elsewhere.
Embedded finance was reshaping expectations. Just as payments and lending became embedded within non-financial ecosystems, trading was the next logical step. We saw an opportunity to bring that same model to trading, turning partners into all-in-one investment hubs rather than single asset providers.
We also found that traders today value experience as much as execution; they want real-time, frictionless access to the markets. The Eightcap Embedded multi-asset capability enables that ecosystem, where a trader doesn’t just buy or sell crypto with their exchange but has the opportunity to diversify their assets with derivatives. This increases both engagement and monetisation potential for our clients. Eightcap Embedded wasn’t built in response to a single client need; it emerged from observing the shift towards embedded finance and the behavioural evolution of traders expecting all-in-one access.”
BeInCrypto: Drawing on your background in compliance and payments, how have you approached embedding regulated trading features into partner platforms while maintaining speed and scalability?
Patrick Murphy: “My experience in both the payments and compliance verticals has allowed me to merge regulatory principles with product agility. In payments, I learned that scalability breaks down when compliance is treated as a ‘review step’.
At Eightcap, our embedded trading API is architected with jurisdictional awareness, KYC, AML, and licensing logic that are integrated into the onboarding process and transaction flow. This ultimately means that partners don’t need to build parallel systems; compliance is built in, not bolted on.
By maintaining a compliance core, our partners can launch faster because they’re not revisiting or revalidating core controls.
We position Eightcap Embedded as a ‘compliant-by-design’ infrastructure, allowing brokers, exchanges, and wallets to scale confidently while maintaining trust with both clients and regulators.”
BeInCrypto: Integrating derivatives and crypto products within embedded finance introduces unique technical and risk-management challenges. What were the hardest trade-offs in balancing usability, compliance, and resilience across volatile markets?
Patrick Murphy: “One of our challenges was creating an experience that felt native within partner platforms, while still adhering to regulatory requirements, like client classification under TMD, leverage limits, and margin requirements.
However, this was easily and successfully managed with both our trading teams and legal and compliance teams collaborating to create a working integration for our partners that is compliant.”
BeInCrypto: Eightcap Tradesim rewards users for simulated trading. What have you learned about trader behaviour or education from this experiment, and how has it influenced your approach to onboarding and retention?
Patrick Murphy: “Tradesim revealed that traders learn best when the environment feels real, but the consequences are not. By simulating live market conditions and rewarding training performance, we saw a measurable increase in confidence in trading. Many traders develop real trading discipline, such as tracking positions, understanding the market, and analyzing data. The key takeaway here is that gamified education bridges the gap between curiosity and confidence.
We found that educational engagement directly correlates with trading longevity. Users who spent more than five days in simulated trading were more likely to become active traders.”
BeInCrypto: Stablecoins are reshaping settlement and liquidity. How is Eightcap using them to streamline fiat-crypto flows within embedded platforms, and what overlooked frictions remain around regulation or cross-border transfers?
Patrick Murphy: “Stablecoins have been one of the most meaningful financial innovations of the past decade. They’ve extended access to digital dollars like USD₮, enabling instant, low-cost transfers of size and filling gaps left by fragmented banking and payment systems, particularly across emerging markets and countries outside of the UK, EU, and Australia.
At Eightcap, we’ve been able to use stablecoins to make client funding and withdrawals faster and more reliable, removing friction where traditional rails don’t perform. But there are still regulatory hurdles when it comes to treating this version of the dollar as client money within licensed entities. Existing frameworks weren’t designed for blockchain-based settlement, so custody, safeguarding, and reconciliation requirements remain built around traditional bank money.
Interoperability with USD bank accounts also remains limited. Stablecoins settle 24/7 on-chain, but banks still operate within business hours and siloed payment networks. Until regulation and infrastructure catch up, stablecoins remain a parallel system, highly efficient in their own right, but not yet fully integrated with how regulated financial institutions manage client funds.”
BeInCrypto: What regulatory or technological shifts do you expect will define embedded multi-asset trading over the next two years, and how is Eightcap positioning itself to lead that transition?
Patrick Murphy: “Over the next two years, most assets will begin to move on-chain, not just crypto, but tokenized gold, equities, and cash equivalents. That shift will fundamentally change how capital is used. Once assets exist natively on-chain, they can be deployed far more efficiently as collateral, for settlement, or to reinvest without having to sell or exit positions. Investors will be able to use Bitcoin, tokenized gold, or stocks as dynamic collateral to trade other assets, hedge positions via derivatives, or reinvest instantly.
At Eightcap, we’re partnering with leading crypto technology firms that require a global licensing stack to bring on-chain and hybrid DeFi/traditional finance products to market. By combining regulated multi-asset infrastructure with tokenized assets and stablecoin settlement, we enable our partners to offer seamless, compliant, and capital-efficient trading experiences.
As crypto and tokenization regulations mature, Eightcap is positioning itself as the bridge between traditional capital markets and the emerging on-chain economy.”

Itaú Asset Management, Brazil's biggest private bank, says that starting in 2026, investors should think about putting 1% to 3% of their portfolios in Bitcoin. This week, a research report came out that said Bitcoin should be a tiny, extra holding instead of a main bet.
The bank's note talks about how Bitcoin doesn't have much in common with many traditional assets and how currency concerns hurt local investors a lot this year. Itaú also worked on building the infrastructure underlying that view. In September 2025, it set up a separate crypto section and hired João Marco Braga da Cunha, a former Hashdex executive, to manage the team. That new area is next to the bank's other products and is aimed to let customers use regulated crypto technologies.
Access Through Local Goods
Brazilian savers can already get to Bitcoin through Itaú-linked products. The bank is one of the people that helped develop the IT Now Bloomberg Galaxy Bitcoin ETF, which is traded under the symbol BITI11. It started trading on November 10, 2022. The ETF allows investors access to Bitcoin on the local market, and it is one of many crypto-related products, such with unit trusts and pension plans.
Itaú says their regulated crypto suite handles over R$850 million across numerous funds and ETFs. This isn't a lot compared to the rest of its company, but it's still a clear evidence that the product is ready. The bank's asset department is very big; it manages more than 1 trillion reais for clients. This is one reason why its advice on allocations gets so much attention.
Itaú's move comes after a year when currency fluctuations saw some Brazilian investors of overseas assets lose even more money. That fact seems to be part of the logic behind suggesting a 1%–3% investment. It's a minor cushion for people who are worried about local-currency shocks, not a wager aimed to replace equities or bonds. The bank sees the position as a long-term, disciplined allocation, not a short-term trade.
The advice for regular investors is easy to understand: keep your exposure minimal and under control. A 1% holding won't impact a diversified portfolio much on its own, and 3% is still in what many institutions call a "satellite" slot. Reports say that Itaú plans to provide more options through the new unit as demand rises. These options will range from low-volatility wrappers to riskier methods.

As of Monday, the price of Solana is getting closer to the upper trendline of a falling wedge pattern; a breakthrough indicates that a rally is on the horizon.
Since October 31, US-listed spot Solana ETFs have consistently reported weekly net inflows, pushing the total assets under management (AUM) to approximately one billion dollars.
A breakout to the upside is favored by the technical view, with a target price of more than $160.
At the time of this writing on Monday, the price of Solana (SOL) is hovering at $131. It is getting close to the upper border of a falling wedge pattern and is sitting in anticipation of a decisive breakout. The demand for spot Solana Exchange-Traded Funds (ETFs) remained consistent on the institutional side, which resulted in the total assets under management (AUM) reaching approximately one billion dollars since the inception of the funds. In addition, the technical forecast indicates that there is a possibility of an upside breakout, with bulls aiming for levels that are higher than $160.
SOL stock continues to be accumulated by institutional investors.
Since it was first introduced on October 28th, the demand for SOL from institutions has been steadily increasing. Based on the statistics provided by SoSoValue, it has been seen that spot Solana ETFs have consistently experienced positive net inflows ever since their introduction. As of Monday, the total net assets of these funds reached $907.18 million. A bullish prognosis for SOL is shown by the continued influx of ETFs, which implies that institutions are buying dips rather than leaving positions, despite the recent consolidation of prices.
Weekly chart of the total net inflows into the SOL spot ETF SoSoValue is the source.
With regard to derivatives, the long-to-short ratio for SOL on CoinGlass is currently at 1.07, which is the highest level it has been in more over a month. As a result of traders placing bets on the asset price to increase, the ratio that is more than one indicates that the market is in a bullish sentiment.
Since the beginning of October, the price of Solana has been trading within a falling wedge pattern, which is constructed by linking multiple highs and lows with two trendlines. As this article is being written on Monday, SOL is getting closer and closer to the top trendline boundary of this arrangement.
It is possible that SOL will extend the rally into the next daily resistance level, which is located at $160, if it breaks above the pattern.
Indicating that bearish momentum is beginning to fade, the Relative Strength Index (RSI) on the daily chart is currently reading 42, indicating that it is trending upward toward the neutral level of 50. In order to maintain the bullish momentum, the relative strength index (RSI) needs to remain above the neutral line.
On the other hand, if SOL experiences a correction, it may continue its downward trend until it reaches the low of $121.66 on November 21.
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