During the period from December 15 to 21, 2025, the cryptocurrency market experienced a noticeable decline against a backdrop of macroeconomic uncertainty, large-scale token unlocks, and seasonal pre-holiday lull. The total market capitalization decreased by approximately 3.5% to $2.99 trillion, reflecting investor caution and capital rotation into defensive assets.
Market and Price Dynamics
Bitcoin (BTC) started the week around $89,600 but fell to $88,000 by the weekend under macroeconomic pressure, losing 1.8% for the period. Bitcoin's market capitalization decreased from $1.77 trillion to $1.74 trillion, linked to weakening risk appetite and absence of strong growth catalysts. Ethereum (ETH) followed a similar trajectory, declining 3.3% from $3,000 to $2,900, despite ongoing development activity; optimism around Layer 2 scaling weakened under general market downturn.
Solana (SOL) suffered more significantly, dropping 5% from $200 to $190 due to reports of network congestion and outflows from high-risk altcoins. XRP lost 6.7%, reflecting regulatory concerns, while Binance Coin (BNB) stood out with 2.5% growth thanks to exchange ecosystem developments. Trading volumes decreased to $150 billion daily by week's end, signaling reduced conviction among retail and institutional players. Volatility remained elevated, with BTC's daily fluctuations ranging $87,577–$90,136 during the period's opening.
Regulatory Events and Macroeconomics
The market reacted to global signals: hawkish Bank of Japan (BoJ) comments triggered sharp BTC declines, while Fed rate decision expectations (70% probability of December cut) added uncertainty. The DeFi sector recorded TVL decrease to $119 billion, though the drop was less severe than overall market declines (ETH -38%, AAVE/LDO -40–50%), primarily due to price depression rather than outflows. DEX on-chain activity increased while Aave's TVL doubled year-over-year, indicating protocol resilience.
Blockchain venture investments (DeFi, Web3, AI) continued but with focus on compliance-oriented projects. Total 2025 hacking losses exceeded $2.1 billion, predominantly from wallet compromises.
Technology, Unlocks, and Infrastructure
Key pressure factors included token unlocks totaling $666.4 million: projects released significant volumes, intensifying selling pressure in DeFi and infrastructure sectors, reinforcing bearish sentiment. This prompted capital rotation toward revenue-generating narratives. Ethereum is preparing the Fusaka upgrade for L2 traffic processing, sustaining long-term interest (BitMine purchased 97k ETH despite losses).
Greeks.Live reported weekly block trade volume of $121.3 million (December 15-21), highlighting institutional derivatives activity. Sectors like AI infrastructure (Amazon's $50 billion investment) boosted sentiment temporarily.
Conclusion
The week of December 15-21, 2025, confirmed pre-holiday bearish trends: market capitalization at $2.99 trillion, BTC below $90,000, with unlocks and macro risks dominating. For newcomers, this represents a recalibration phase: declines are natural, but key levels ($85,000–$88,000 for BTC) and rotation into BNB/DeFi signal potential rebound possibilities if inflation or liquidity stabilizes. Long-term growth will be supported by upgrades like Fusaka and selective investments; monitoring supply events and Fed policies is recommended for risk management.