Is the Crypto Market Truly Recovering or Just a Deadly Trap?

Crypto News - Posted on 23 December 2025 Reading time 5 minutes

Crypto asset trading at the start of this week, Monday (December 22, 2025), delivered a much-needed boost in sentiment for market participants. After experiencing heavy pressure last week, the market is now showing signs of stabilization along with a fairly solid rebound.

 

Most large-cap cryptocurrencies have returned to positive territory, indicating a gradual recovery in risk appetite ahead of the Christmas holiday. This optimistic tone is supported by the belief that the long-term trend remains intact, even though the market still faces one more key economic data release before year-end.

 

That said, market turbulence cannot be ruled out, and today’s price rally may still carry the risk of turning into a bull trap.

 

Bitcoin & Saylor: A Strong Underlying Base

Market attention remains focused on Bitcoin (BTC), which is currently consolidating comfortably around the US$88,641 level. A daily gain of 0,69% has helped calm market nerves after prices briefly dipped toward US$86,000 last week.

 

Investor confidence is further reinforced by on-chain data highlighting institutional positions such as MicroStrategy. Michael Saylor’s average Bitcoin purchase price now stands at approximately US$74,972 per coin. As long as market prices stay above this level, it serves as a psychological safety net for retail investors and confirms a major support zone that should hold.

 

Ethereum: A Psychological Breakthrough

One of the most encouraging developments today comes from Ethereum (ETH). The second-largest cryptocurrency has managed to reclaim the key psychological level of US$3,000.

 

After falling to around US$2,800, ETH led the large-cap recovery with a daily gain of 1.81%, pushing its price to roughly US$3,021. This move above a critical threshold signals renewed confidence in the smart contract ecosystem and the broader altcoin market, potentially paving the way for capital rotation into more speculative assets toward year-end.

 

Altcoins: Market Selection Continues

Elsewhere in the altcoin space, performance divergence remains evident. TRON (TRX) and Bitcoin Cash (BCH) emerged as relative outperformers, posting weekly gains of 3.22% and 3.68%, respectively, demonstrating resilience amid market volatility.

 

In contrast, Cardano (ADA) remains one of the weakest performers, sliding 8.50% over the past week. This suggests investors are still applying strict selection criteria and favoring assets with stronger technical momentum.

 

Awaiting US GDP Data Amid the Four-Year Cycle

Despite the positive market tone today, investors continue to exercise caution ahead of upcoming macroeconomic events. Attention is now fixed on the release of US Gross Domestic Product (GDP) data scheduled for Tuesday (December 23, 2025).

 

This growth data will be closely watched as it may indicate whether the US economy is heading toward a soft landing or facing a more pronounced slowdown. From a broader perspective, however, recent sideways movement and volatility are still considered normal within the framework of the four-year market cycle theory.

 

Based on current price levels and historical patterns, the ongoing year-end consolidation phase may simply be a prelude to renewed downside pressure heading into 2026.

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