As we reach the end of a challenging year, Bitcoin continues to linger around $88,000. With trading volumes remaining weak due to holiday breaks, many altcoins are hovering near their support levels. As we prepare to welcome 2026, significant developments are expected to influence the cryptocurrency markets by January 15th. What is the market sentiment on this last day of the year?
US Markets Overview
At the time of writing, the US unemployment claims data has been released, showing a figure of 219,000 against an expectation of 220,000. This marks the lowest level since November 29th. The decline in unemployment claims may signal a recovery in employment, but confirmation through broader reports like non-farm payrolls is still necessary.
US markets will have an early close at 9:00 PM today and will remain closed for the holiday tomorrow. Tensions over the ongoing refinery attacks between Ukraine and Russia remain unresolved, similar to the peace misunderstandings during Trump’s first presidency year. Signals of escalating tensions with Iran cast a shadow over the coming year’s outlook.
The Dollar Index is experiencing one of its biggest annual declines amid concerns over Fed policies, which will soon be confirmed. The trade activities in the US markets have also weakened due to the holiday. Although the recent Fed meeting minutes highlighted some disagreements within the institution, no new insights emerged to stir excitement in the crypto sector.
China has announced a $51 billion public spending plan for next year to support consumption and investment. Meanwhile, US futures are sliding slightly, and today’s market is expected to continue in a horizontal trend.
Cryptocurrencies on December 31
Bitcoin seems likely to end the year below $90,000, with the recent attempt to break this barrier falling short. Increased selling pressure at $90,000 suggests that investors are pessimistic about the first quarter of 2026. Social media is rife with messages from small and medium-sized investors ready to give up after losing their capital in futures.
The market sentiment has not been this gloomy since the FTX collapse. With altcoins falling below last year’s lows, the appetite of individual investors has significantly diminished. The Coinbase Premium, a measure of US investor demand, remains in negative territory.
The only positive news is the BTC ETF flows turning positive for the first time since December 17, with BlackRock, Ark, and Fidelity ETFs seeing a total net inflow of $345 million.
