The current crypto sell-off and some coins poised to deliver value in 2026 comprise the crypto edition of Web3 Thoughts of the Week.
Crypto sell-off
“Bitcoin is in the red once again – a chart that is becoming all too familiar as a disappointing Q4 draws to a close. Having fallen to around $86,000, BTC is now knocking on the door of its 100-week moving average – a strong support level that sits around $84,800. And, once again, AI bubble fears and concerns over future monetary policy appear to be to blame.
“For a while, the market was convinced that ultra-dove Kevin Hassett was a shoo-in for the next Fed chair role, but now Kevin Warsh – a far more hawkish candidate – appears to be emerging as the frontrunner. The second Kevin is far more likely to stick to the FOMC’s current projections of just one more rate cut in 2026, so the market is starting to believe this narrative.
“On top of this, there’s been a fresh sell-off in AI hyperscalers, with names like Oracle and CoreWeave sliding, as overspending concerns resurface again. However, while there’s no doubt the wild AI rally is unsustainable, the rampant demand will keep this ship afloat for longer than people fear.
“It also doesn’t help that December is typically a time to book tax losses for the financial year, and Bitcoin is one asset that will have lost many investors money. This all makes for a lacklustre end to 2025, and we could even see BTC fall below $80,000 if the rout continues. In the short term, the ETF cost basis at $83,800 is the next level to watch, and there’s support below that at $81,200 – the true market mean.”
– Nic Puckrin, investment analyst and co-founder of the Coin Bureau
“Bitcoin recorded another correction at the start of the week, reflecting a more cautious investor environment. The cryptocurrency fell 1.3% on Tuesday to around $87,095, after touching a low of $85,288, its weakest level in two weeks. This move took place amid subdued risk appetite and additional pressure from the global technology sector, which has shown signs of consolidation following recent gains.
“Bitcoin’s pullback occurred despite the Federal Reserve’s recent rate cut, a move that typically supports higher-risk assets. However, the market had largely priced in this decision, limiting its positive impact. Instead, investors reduced exposure to
speculative assets ahead of key U.S. economic data releases.
“Despite this backdrop, monetary policy expectations have remained relatively stable. The market assigns only a 24.4% probability to a rate cut at the Federal Reserve’s January meeting, suggesting that participants anticipate a cautious stance from the central bank. This perception has limited upside momentum across both traditional markets and cryptocurrencies.
“Even so, the medium- and long-term outlook for Bitcoin remains constructive. Matt Hougan, chief investment officer at Bitwise, believes the cryptocurrency could break its traditional four-year cycle and reach new all-time highs in 2026. Factors supporting this view include reduced excessive leverage, sustained inflows into spot Bitcoin ETFs, and structurally lower volatility, reflecting a more mature market.
“In conclusion, Bitcoin is navigating an adjustment phase marked by macroeconomic caution and subdued risk appetite, in a context where labor data and monetary policy dominate market sentiment. However, beyond short-term volatility, changes in market structure, increased institutional participation, and stabilizing volatility suggest that the cryptocurrency is in a consolidation phase that could lay the groundwork for a new bullish cycle in the years ahead.”
– Antonio Di Giacomo, senior market analyst at XS.com
“The end of the year has seen huge selling in the cryptocurrency market, some of which was to do with macro factors, some of which was simply the mass liquidation of short positions in a still illiquid market, and then tax loss selling ahead of tax season in the US. Little, arguably, had anything to do with the crypto market itself and any loss of confidence.
“Things will likely settle significantly as we approach the Christmas period and investors take a breather, although, as we know, crypto never rests, and so further selling pressure can’t be ruled out as the year draws to a close. Debate rages about what a bottom might look like for Bitcoin, with some even predicting $70,000, but a sharp drop of this magnitude is unlikely before the year draws to a close.
“For long-term exposure, the safest bets continue to be the crypto top 20 blue-chips and especially – as long as you’re not expecting it to shoot the lights out – ETH. It remains the workhorse currency of the foundational layer of the entire Web3 world – a world that has grown massively this year.
“We’ve seen huge institutional adoption of Ethereum, which grew this week with JP Morgan launching its own on-chain fund on Ethereum, while stablecoin volume continues to break records as institutions and retail investors alike seek yield in the DeFi ecosystem of the world’s computer. And so, as we head into 2026, investors can rely on ETH along with the other big guns.
“This year, particularly, crypto has firmly established itself as a viable, promising, reliable and growing marketplace. Like the global stock market, it has its oddities, scams and setbacks, but for anybody interested in this ecosystem over the long term, these dips may present a buying opportunity rather than a reason to panic.
“And, as a side note, I think we can all, with some relief, expect to see a sharp decrease in political ‘alt’ coins in 2026.”
– Kevin Rusher, founder of RAAC
Other crypto on the move
“Ripple’s early decision to focus on institutional adoption is now paying off. Regulatory clarity and spot ETF inflows confirm the need for compliant, institutional digital assets.
“The real signal is XRP’s quiet integration into over 300 financial institutions for cross border payments. This is a perfect case study for TrustFi in practice. The technology is proven, but its success is fundamentally about solving the compliance problem. Compliance is the true gateway to mass adoption for any serious digital asset.”
“Bitcoin is the original trustless layer, the digital gold that removed reliance on governments and central banks. Spot Bitcoin ETFs are a structural shift, not a short term trend, solidifying BTC’s role as a global store of value. The scarcity model underwrites this institutional demand.
“However, Bitcoin is a settlement layer, not an application layer; it is not built for high-frequency transactions. Its stability is now underwritten by institutional capital, but the next wave of innovation will come from layers built on top of Satoshi’s vision.”
“Linea perfectly embodies the principle of trusting systems over people through zero-knowledge proofs. The ability to deploy existing Ethereum dApps without code changes is a critical accelerator for developer adoption. This technical solution to scalability is far superior to simply boasting about the volume of instructions a machine can process.”
– Alexis Sirkia, chairman of Yellow Network