Market Movement:

  • Bitcoin trades around $88,703, up 1.5% in the last 24 hours, with a market cap of approximately $1.78 trillion and 19.97 million BTC in circulation out of 21 million total supply.
  • Ethereum is valued at about $2,970, while Solana (SOL) is just over $123, reflecting cautious sentiment and limited altcoin momentum.

Key Events:

  • Trust Wallet’s browser extension (version 2.68) was compromised, resulting in over $6 million in losses across multiple blockchains, prompting users to upgrade to version 2.69.

Trading Signals:

  • Bitcoin’s trading volume stands at $24.3 billion, supporting its current price around $89,160, with a slight upward movement after bouncing from a low of $83,800.
  • Institutional and retail traders are focusing on Bitcoin, as indicated by its dominance and the high volume of options expiring, suggesting cautious positioning ahead of potential market resets.
  • Whale activity details are not specified, but the large options expiry indicates significant institutional interest and hedging activity.

Narrative Shifts:

  • The crypto sector is experiencing a shift towards Bitcoin dominance, with altcoins showing weak momentum (Altcoin Season Index at 16), indicating a preference for safer assets amid fear index at 27.
  • Stablecoins have gained over $100 billion in supply, reflecting increased liquidity and confidence in dollar-pegged assets, while market sentiment remains cautious despite recent gains.
  • Geopolitical developments, including US-Russia discussions on nuclear plant management and potential Bitcoin mining at Zaporizhzhia, are influencing narratives around crypto’s role in energy and geopolitics.

Risk Alerts:

  • The Fear and Greed Index at 27 signals heightened caution, with increased volatility risks amid record options expiry and recent security breaches.
  • Trust Wallet’s security incident highlights operational risks, with over $6 million lost, emphasizing the threat of targeted exploits on wallet extensions.
  • Regulatory and geopolitical tensions, such as US-Russia negotiations and Ukraine energy crises, pose ongoing threats to market stability.

Opportunities:

  • The stablecoin market’s rapid growth and increased supply suggest potential for liquidity-driven strategies and stablecoin-backed DeFi projects.
  • The upcoming large options expiry could create short-term volatility opportunities for traders willing to hedge or speculate around key strike levels.
  • Bitcoin’s technical stabilization near $89,200 and high trading volume point to potential breakout scenarios toward $90,000 or higher, especially if market sentiment shifts.

Flows & Positioning

Bitcoin Options Expiry Triggers $27 Billion Market Event

Crypto markets are preparing for a significant event on December 26, with over $27 billion in Bitcoin and Ethereum options set to expire on Deribit. This expiry accounts for more than half of the derivatives exchange's total open interest, marking it as one of the largest structural resets in crypto history. Bitcoin options alone represent approximately $23.6 billion, while Ethereum options make up $3.8 billion. The implications of this massive expiry could lead to heightened volatility and price movements as traders adjust their positions ahead of the year-end.

Institutional Outflows Drive $825 Million from Bitcoin ETFs

U.S. spot Bitcoin ETFs have experienced significant outflows, totaling approximately $825 million over eight consecutive days, primarily driven by year-end tax loss harvesting strategies. On December 24 alone, Bitcoin ETFs saw net outflows of $175 million, with BlackRock’s IBIT leading the withdrawals at $91.37 million. In contrast, XRP and Solana ETFs have shown resilience, attracting modest inflows of $11.93 million and $1.48 million, respectively. This divergence highlights selective investor appetite amid broader caution in the market.

Bitcoin Holds $89K Amid Whale Movements and Market Sentiment

Bitcoin is currently trading around $89,160, having gained 1.5% in the last 24 hours. Despite this uptick, the market sentiment remains cautious, with the Crypto Fear and Greed Index at 27, indicating a prevailing sense of fear among investors. Additionally, Bitcoin whales have moved approximately $230 million to exchanges, yet the price remains stable, suggesting a potential buildup of selling pressure. Key support is observed around the $86K-$87K range, while resistance is seen at $90K, indicating critical levels for traders to monitor.

Stablecoin Market Surges to $314 Billion Amid Regulatory Developments

The stablecoin market has seen a substantial increase, with the total supply rising by $100 billion to reach $314 billion in 2025. Tether continues to lead in transaction activity, followed by Ripple's RLUSD and Circle's USDC, while the newly launched Trump-backed USD1 has quickly entered the top five stablecoins. This growth reflects a significant year for stablecoins, driven by regulatory advancements such as the signing of the GENIUS Act and Circle's IPO. As institutional adoption of stablecoins increases, the market is poised for further expansion in the coming years.

On-Chain & Network

Uniswap Governance Activates Fee Switch for Deflationary Mechanism

Uniswap governance has approved the UNIfication proposal with a remarkable 99.9% support, which activates a fee switch mechanism. This change will redirect a portion of the protocol fees to burn UNI tokens, thereby creating a deflationary mechanism that is directly tied to platform usage. This strategic move aims to enhance the economic model of the Uniswap platform by reducing the circulating supply of UNI tokens, potentially increasing their value over time.

Trust Wallet Security Incident Highlights Vulnerabilities

Trust Wallet has confirmed a security incident affecting version 2.68 of its browser extension, with users reporting losses exceeding $6 million. The wallet provider has urged users to upgrade to version 2.69 after identifying the issue, emphasizing the importance of maintaining updated software to protect user funds. This incident underscores the ongoing vulnerabilities in crypto wallet security, which can have significant financial implications for users.

Macro & Policy

US and Russia Discuss Joint Management of Zaporizhzhia Nuclear Power Plant for Bitcoin Mining

Russian President Putin announced that the US and Russia are in discussions regarding the joint management of the Zaporizhzhia Nuclear Power Plant, specifically mentioning the US's interest in utilizing the plant's electricity for Bitcoin mining. This plan reportedly excludes Ukraine from the negotiations, raising legal concerns as international bodies, including the IAEA, have stated that decisions regarding the plant without Ukraine's involvement are illegal. The plant has been under Russian control since March 2022 and is currently not generating electricity, relying on emergency diesel generators for cooling due to its reactors being in safety shutdown.

2025 Marks Systemic Integration of Digital Assets into Mainstream Finance

The year 2025 is highlighted as a pivotal moment for digital assets, characterized by significant government validation through comprehensive stablecoin legislation and the formal recognition of Bitcoin as a strategic national reserve asset. This shift indicates a growing acceptance and integration of cryptocurrencies within institutional finance, potentially influencing market dynamics and investor behavior moving forward.

Asia's Crypto Regulation Focuses on Practical Implementation of Stablecoins and RWA Tokenization

In 2025, Asia's regulatory landscape for cryptocurrencies is shifting towards the practical implementation of stablecoin frameworks and the tokenization of real-world assets (RWA). This focus on delivering workable regulations suggests a move away from theoretical promises to actionable policies that could reshape the market structure and enhance institutional participation in the crypto space.

Security & Incidents

Trust Wallet Browser Extension Compromised, Drains Over $6M User Funds

Multi-chain crypto wallet provider Trust Wallet confirmed a security breach on December 25, 2025, with initial losses exceeding $6 million. Blockchain security expert ZachXBT flagged the incident after multiple Trust Wallet users experienced unauthorized fund outflows. The crypto wallet stated, “We’ve identified a security incident affecting Trust Wallet Browser Extension version 2.68 only,” and advised users to disable and upgrade to version 2.69. Victims reported that funds were drained from their wallet addresses within a short time frame on Christmas.

One user reported a loss of over $300,000, stating, “Everything I’ve been building for. Stolen on Christmas Day.” The transactions occurred within a 4-minute window, and ZachXBT noted that the number of victims had risen to the hundreds, with funds siphoned in SOL, BTC, and EVM tokens.

Trust Wallet Users Suffer Mystery Hack: Over $6 Million Stolen From Hundreds

Reports of a large-scale hack involving Trust Wallet flooded social media on December 25, 2025. ZachXBT stated that hundreds were affected, and over $6 million was siphoned from victims’ wallets. The hack has been described as a mystery, impacting multiple users.

Keep yourself in the know

Open-source crypto market intelligence delivered everyday.