Bitcoin and Ethereum Signal Market Shift Amid Low Activity

Key Points:
  • Bitcoin’s downtrend might reverse bullish in January.
  • Rising funding rates and stable leverage suggest market shift.
  • Potential for significant asset allocation adjustments.

According to a weekly market report by 10x Research on December 29, the cryptocurrency market displayed low activity, yet derivatives signals hinted at potential structural shifts.

This divergence could lead to significant market adjustments, affecting assets like Bitcoin and Ethereum, both showing mixed technical signals amid lower volatility and trading volume.

Bitcoin ETFs and Derivative Signals Indicate Change

The report from 10x Research highlights the crypto market facing low activity levels at the start of the new year, yet derivatives positioning signals a contrary movement. Volatility is narrowing, with rising funding rates and stable leverage ratios despite declining trading volumes. These structural elements suggest a market shift rather than a continuation of existing trends.

Interestingly, the report indicated that trading volume for cryptocurrencies is down 30%, coupled with liquidations continuing in an orderly manner. Bitcoin and Ethereum, significant players in the market, are exhibiting signs of potential bullish trend changes. The technical indicators approach critical points that could trigger asset allocation adjustments.

While there were no official statements from key leaders or institutions in the industry, derivative signs suggest a differing narrative beyond the current market calm. ETF outflows and volatile trading behavior paint a picture of a market at a potential turning point.

Bitcoin at $88K Amid Historical Context and Expert Views

Did you know? In 2025, Bitcoin underperformed despite reaching new highs, reflecting broader shifts influenced by high leverage and policy adjustments. Such patterns align with current market conditions.

According to CoinMarketCap, Bitcoin (BTC) is currently priced at $88,079.66, boasting a market cap of $1.76 trillion. Despite a 24-hour trading volume surge of 13.68%, BTC’s price shows recent drops, with a 60-day decrease of 20.26%. Its circulating supply stands at 19,968,521, with a market dominance of 58.86%.

bitcoin-daily-chart-5349
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 00:47 UTC on December 29, 2025. Source: CoinMarketCap

Insights from the Coincu research team suggest that, with ongoing funding rate increases and narrowing volatility, there may be a potential realignment in asset allocation. Investors should watch historical trends and emerging signals closely as they evaluate their crypto portfolios.

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