On Christmas Day, the U.S. stock market posted fresh records, but the cryptocurrency market remained detached. Bitcoin traded around $87,000 after a slight dip over the past 24 hours. Ethereum failed to clear the $3,000 barrier, while Solana and XRP, among others, failed to ride the rally.
The divergence stems in part from macro data: robust GDP growth and a tight labor market reducing near-term Fed rate-cut expectations, which diminishes liquidity for crypto assets. Consequently, risk assets channeled funds into high-quality equities, leaving crypto markets with limited fresh capital.
Crypto-specific flows weakened: Bitcoin spot ETF outflows occurred, and altcoins underperformed as meme coins retreat from the market. Analysts expect trading to remain subdued into year-end, with a potential re-alignment in 2026 if policy becomes crypto-friendly and rate cuts resume early next year. Key area to monitor is whether the $85,000 support holds.
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