2025-12-27 10:21:12

During Christmas, Bitcoin experienced a sharp volatility. In the trading activity of a major exchange, BTC plummeted from $87,600 to $24,100 at one point, then quickly rebounded. This flash crash led to 78,000 liquidations, with losses totaling $136 million. Starting from the year's high of $126,000, Bitcoin has already fallen more than 30%, turning the annual return negative. Ethereum also repeatedly tested the $2,900 level.

While the market is declining, institutions are quietly taking action. US stock crypto ETFs saw over $1 billion in outflows in a single week, seemingly a sign of capital withdrawal, but the real story may be different.

More noteworthy are the regulatory changes. The Federal Reserve officially lifted restrictions on crypto operations, fully opening the door for banks to enter this space. Regulatory authorities have rolled out favorable policies: the SEC issued guidelines on digital asset custody, the CFTC relaxed qualifications for Bitcoin and Ethereum as collateral, and the FDIC granted deposit insurance licenses for stablecoins. The previously fragmented compliance pathways are now gradually connecting.

More aggressive measures are underway. DTCC plans to tokenize US Treasuries and bring them on-chain, with an expected rollout in 2026. SoFi Bank has launched its first bank-issued on-chain stablecoin. The integration of traditional finance and crypto assets is progressing faster than expected.

The trends in capital markets are also worth monitoring. A compliant trading platform completed 10 mergers and acquisitions this year, with M&A activity in the crypto industry increasing by 300% year-over-year, and annual venture capital funding surpassing $25 billion. Behind these numbers is a clear signal of institutions quietly positioning at low levels.

The Christmas plunge may be a typical manipulation pattern. Regulatory shifts are the core driving force of this cycle. From a technical perspective, the $80,000 to $85,000 range could be an ideal opportunity for phased accumulation. From an investment logic standpoint, priority should be given to domestically compliant projects and infrastructure tracks, while avoiding high leverage operations.

If policy favorable conditions continue to be released and institutional funds keep entering, 2026 could indeed usher in a new cycle.

BTC0,25%

ETH0,1%

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rugpull_ptsd

· 8h ago

Damn, this sudden crash is too outrageous, 78,000 people wiped out directly. Institutions are accumulating chips at low levels, retail investors are buying at high levels, it's always the same pattern. Regulation has really shifted, this time feels different. I'm also waiting in the 80,000 yuan range, but to be honest, I don't dare to hold a heavy position, too afraid of happening again. Compliant projects are the long-term ones; leverage and all that, just forget it, do we still want to risk our lives? I'll believe half of the 2026 cycle; let's see how the policies continue to unfold.

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TopBuyerBottomSeller

· 8h ago

7,800 people liquidated, this flash crash is really outrageous Institutions are accumulating at the bottom while retail investors are wandering at the top At the moment of 24,100, I knew the shakeout had begun The loosening of regulations is indeed a signal, traditional finance is entering the market 85,000 is really a good entry point Stop playing with leverage, this time look at the long-term

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ETHReserveBank

· 8h ago

Liquidations are all leveraged traders; they deserve it. Relaxed regulation is the real signal; don't be scared by the dip. It's just a shakeout; institutions are accumulating coins at low prices. 80,000 yuan is the true entry price; don't panic. Compliance projects are the future; don't touch scams. 2026 definitely has potential, but the prerequisite is to avoid reckless behavior. This dip is an opportunity for retail investors to get in. Institutions are quietly entering the market, and you're still shorting.

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blocksnark

· 8h ago

Honestly, this sudden crash is just a shakeout, the real chips are in the hands of institutions. But having 78,000 people liquidated is really brutal; leverage is poison. Regulatory openness is the key, there’s real potential by 2026. Buying in the 80,000 to 85,000 range is not a loss, just don’t be greedy. DTCC wants to put government bonds on the blockchain? If that really happens, traditional finance will be blown up.

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BearMarketBarber

· 8h ago

Shakeout? Sounds nice, but 78,000 people directly lost 136 million, is this what you call a "good opportunity"? Institutions are positioning at low levels, retail investors are taking the bait at high levels, old tricks. Regulation has indeed shifted, but it won't be verified until 2026. Those going all-in now are just gamblers. I see 80,000 to 85,000 as a trap, let's wait a bit longer. Stablecoin deposit insurance? Sounds good, but I still believe cash is king.

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