Bitcoin may remain largely flat in the first quarter of 2026 despite historical trends suggesting stronger gains, CryptoQuant CEO Ki Young Ju said Wednesday.
“Capital inflows into Bitcoin have dried up,” Ju explained, noting that investors are returning to “stocks and shiny rocks” as gold and silver prices soar.
Ju added that Bitcoin is unlikely to crash from its current peak and expects “just boring sideways for the next few months.”
At the time of publication, Bitcoin was trading around $90,890, down over 2% in the past 24 hours and off a high of $94,400 earlier this week.
First Quarter Trends
A sideways start would break with historical performance, as January has averaged 3.81% gains since 2013, with February and March showing stronger historic growth of 13.12% and 12.21%, according to CoinGlass.
Ju’s remarks follow warnings from veteran trader Peter Brandt and Fidelity’s Jurrien Timmer that Bitcoin could fall to $65,000 or even $60,000 this year.
Market sentiment remains muted, with the Crypto Fear & Greed Index hovering between “fear” and “extreme fear” since early November.
On Thursday, the index posted a “fear” score of 28, reflecting cautious investor behavior.
Spot Bitcoin ETFs Show Early Momentum
Spot Bitcoin ETFs have seen net inflows of $925.3 million in the first three trading days of 2026, according to Farside Investors data.
While Ju maintains a conservative outlook, other participants are bullish.
Venture capitalist Tim Draper predicted “2026 will be big,” noting that Bitcoin is going mainstream and referencing his $250,000 prediction from 2018.
Bitwise head of research Ryan Rasmussen expects Bitcoin to break the traditional four-year cycle and reach new all-time highs in 2026, contrary to historical patterns of three up years followed by a down year.
Two major cryptocurrency exchanges have jointly contributed more than $21 million to a political action committee aligned with US President Donald Trump, underlining the growing political influence of the digital asset industry.
The donations were disclosed in a filing submitted on Friday to the Federal Election Commission, detailing fresh inflows into the MAGA Inc. Super PAC.
According to the filing, Gemini Trust Company provided 1,500,000 liquidated USDC as part of its contribution to the group.
The document also revealed two separate $10 million donations from Foris Dax, the parent company of cryptocurrency exchange Crypto.com.
Crypto.com has expanded its ties with Trump’s media business since 2025, a relationship linked to the company’s evolving digital asset treasury strategy.
Together, the contributions significantly boosted the PAC’s already substantial financial reserves.
The filing shows the Super PAC now holds approximately $294 million in total funds.
Additional donations from the wider financial sector were also reported in the same disclosure.
An executive at payment processing firm Shift4 contributed $1 million to the PAC.
JP Morgan Chase Bank, N.A. was listed as having provided more than $4 million in contributions.
Midterms take centre stage
While Trump is not running for reelection in 2026, the funds raised by the Super PAC can still be used to support candidates with similar political views.
Trump’s second term is scheduled to conclude in January 2029, leaving the upcoming midterm elections as a key political battleground.
In 2026, all 435 seats in the US House of Representatives will be contested.
A total of 33 Senate seats will also be up for election.
Democrats are aiming to reclaim control of one or both chambers from Republicans.
The outcome could have far-reaching consequences for financial regulation and cryptocurrency policy in the United States.
Crypto-focused races draw attention
Several races viewed as important for the digital asset industry are already attracting attention.
Republican candidate John Deaton, known for his involvement in XRP-related legal advocacy, is seeking the Massachusetts Senate seat currently held by Ed Markey.
Wyoming Senator Cynthia Lummis, one of the Senate’s most vocal supporters of pro-crypto legislation, announced in December that she will not seek reelection in 2026.
Her departure leaves an open seat in a state closely associated with crypto-friendly regulatory thinking.
Industry figures see these contests as pivotal to the future legislative environment for digital assets.
Lessons from the 2024 election cycle
The cryptocurrency sector played a visible and increasingly coordinated role during the 2024 US elections.
Crypto companies and senior executives spent heavily on advertising and political messaging.
Media campaigns funded by crypto-backed PACs were credited with influencing several closely fought races.
One frequently cited example was Ohio’s Senate contest, which reportedly saw around $40 million in related spending.
Republicans ultimately secured control of the Senate following that election cycle.
The scale of spending marked a turning point in crypto’s political engagement.
Spending momentum continues
Crypto-backed political groups have shown little sign of reducing their activity ahead of the midterms.
In 2024, a spokesperson for the Fairshake PAC said the group was “keeping [its] foot on the gas” as it prepared for future races.
Fairshake and its affiliates spent millions during 2025.
Those funds were directed toward congressional races in Virginia’s 11th district and multiple Florida districts.
With large financial reserves already in place, crypto-linked PACs appear positioned to remain influential through the 2026 elections.
PricewaterhouseCoopers has decided to expand its cryptocurrency business, citing a clearer regulatory environment in the United States.
Chief executive Paul Griggs said changes in regulatory leadership and progress on stablecoin legislation played a central role in the shift.
New leadership at agencies such as the U.S. Securities and Exchange Commission, alongside proposed laws like the GENIUS Act, were key drivers behind the decision.
“The GENIUS Act and the regulatory rulemaking around stablecoin, I expect, will create more conviction around leaning into that product and that asset class,” Griggs said.
He added that “the tokenization of things will certainly continue to evolve as well. PwC has to be in that ecosystem.”
Big Four firm deepens digital asset involvement
PwC is one of the “Big Four” global accounting and professional services firms, reporting revenues of $56.9 billion as of October.
Like many large corporations, the firm has moved further into crypto after years of cautious engagement across the industry.
PwC already lists a wide range of crypto-related services, including accounting, cybersecurity, wallet management, and regulatory advisory support.
The firm also works with exchanges, traditional financial institutions entering crypto, and public-sector clients such as governments and central banks.
Investment in people and capabilities
Griggs said the expansion reflects a deliberate effort to build internal capacity rather than a sudden strategic pivot.
“We are never going to lean into a business that we haven’t equipped ourselves to deliver,” he said.
“Over the last 10 to 12 months, as we’ve taken on more opportunities in that digital assets arena, we’ve bolstered our resource pool inside and outside,” he added.
According to Griggs, demand is rising across both audit and consulting services tied to crypto and blockchain technologies.
“Whether we are doing work in the audit space or doing work in the consulting arena — we do all the above in crypto — we see more and more opportunities coming our way,” he said.
Industry-wide shift among major firms
PwC’s move aligns it with the rest of the Big Four, all of which now offer crypto-related services.
Deloitte provides blockchain strategy and consulting and maintains partnerships with companies involved in smart contracts and blockchain analytics.
Ernst & Young has developed crypto strategy, tax, and advisory offerings aimed at institutional clients.
KPMG has expanded into crypto audits, cybersecurity, and advisory services as demand from enterprises and regulators continues to grow.
The Digital Asset Market Clarity Act, also known as the CLARITY Act, is advancing according to schedule, despite growing impatience from the cryptocurrency sector.
John D’Agostino, Coinbase Institutional’s head of strategy, spoke on CNBC on Friday, acknowledging the delays.
“I completely understand why this is taking longer,” D’Agostino said.
He emphasized that the legislation is foundational for the development of crypto and other real asset classes, making a deliberate pace reasonable.
“It’s the kind of bill that is quite frankly more foundational for the growth of crypto or any real asset class,” he said.
D’Agostino compared the CLARITY Act to the Genius Act, the stablecoin law passed in July.
While the Genius Act was transformative, he noted it was structurally simpler than comprehensive market structure legislation.
“Massive flight of talent” could accelerate passage
The remarks follow White House AI and crypto czar David Sacks’ comment that the CLARITY Act might pass in January.
”We are closer than ever to passing the landmark crypto market structure legislation that President Trump has called for. We look forward to finishing the job in January,” Sacks said on Dec. 19.
D’Agostino expressed confidence in eventual approval, pointing to global momentum for crypto regulation, including Europe’s MiCA framework and regulatory developments in the UAE.
He highlighted the ongoing “massive flight of talent” from the US, which may pressure lawmakers to act faster.
“Part of the rush to get Genius done was to stem that bleeding,” he said.
D’Agostino added that the return of Congress in session could bring renewed urgency.
“I think once we get back in session and everyone can take time to absorb what’s happening, that same burning platform will appear where we really don’t want the US to fall as behind as it’s been on transformational technologies like artificial intelligence and blockchain,” he said.
Delays in the CLARITY Act have already affected the market.
CoinShares reported $952 million in outflows from crypto investment products in the week ending Dec. 19, citing prolonged regulatory uncertainty as a contributing factor.
Veteran trader Peter Brandt suggested the Act’s passage may not dramatically affect Bitcoin’s price.
“Is it a world-shaking macro development? Nope. Needed for sure, but not something that should redefine value,” Brandt told Cointelegraph.
The CLARITY Act represents a pivotal step in US crypto legislation, balancing industry expectations with the careful design required for long-term growth.
Prediction market traders on Polymarket are expressing notable caution about Bitcoin’s near-term price potential, with relatively low odds assigned to extreme upside scenarios despite widespread bullish forecasts for next year.
Data from the Polymarket contract asking “what price will Bitcoin hit before 2027?” shows traders leaning toward modest gains rather than a rapid surge to new highs.
According to the platform, Bitcoin has a 45% probability of reaching $120,000, a level that remains below its previous all-time high and reflects restrained expectations.
Confidence declines further as price targets rise, with $130,000 carrying just a 35% probability and $140,000 priced at 28%.
Only 21% of traders believe Bitcoin will climb as high as $150,000 within the next two years, underlining the market’s current hesitancy.
The most widely supported outcome remains Bitcoin reaching $100,000, which holds an 80% probability and is viewed as the most realistic upside scenario.
End of the Four-Year Cycle Clouds Outlook
Market caution appears linked to Bitcoin closing 2025 in negative territory, an outcome that has shaken confidence in long-standing market patterns.
For years, many investors relied on the four-year cycle tied to Bitcoin’s halving events to anticipate major price movements.
That framework helped traders map out bull and bear phases with relative consistency across previous cycles.
With the latest cycle failing to deliver a clear upside finish, doubts have emerged about whether the model still applies.
The breakdown of this historical pattern has prompted traders to reassess risk, potentially explaining the subdued odds for aggressive price targets.
It has also opened the possibility that new trading dynamics could define Bitcoin’s future behavior.
Analysts Remain Firmly Bullish
Despite restrained prediction market sentiment, analysts continue to argue that Bitcoin’s longer-term outlook remains strong.
Much of this optimism is tied to shifting macroeconomic and political expectations in the United States.
President Donald Trump is expected to announce a new Federal Reserve chair in the coming weeks, a move many believe could signal a more accommodative monetary stance.
Markets are increasingly pricing in the likelihood of interest rate cuts, which historically favor risk assets such as cryptocurrencies.
This anticipation has already fueled strong rallies in precious metals, with gold and silver both reaching new all-time highs late in 2025.
By contrast, digital assets have lagged behind, suggesting potential upside if capital rotates back into crypto markets.
Regulation and Institutional Adoption in Focus
Regulatory developments are also seen as a key catalyst for renewed momentum.
Major crypto legislation, including the GENIUS Act and the CLARITY Act, is expected to bring clearer rules for market participants.
Greater regulatory certainty could encourage more institutional investors to enter the space with long-term commitments.
Several major financial institutions believe these factors will converge in Bitcoin’s favor during 2026.
Firms such as Standard Chartered, Strategy, and Bernstein have forecast Bitcoin reaching $150,000 next year.
More optimistic projections, including those from Fundstrat’s Tom Lee, suggest prices could ultimately rise toward the $200,000 to $250,000 range.
US-based cryptocurrency exchange-traded funds attracted more than $31.77 billion in net inflows during 2025.
The strong demand came despite digital asset markets losing momentum toward the end of the year.
Spot Bitcoin ETFs accounted for the majority of capital entering the sector.
Collectively, they recorded $21.4 billion in net inflows over the year, according to industry data.
That figure, however, represented a decline from the $35.2 billion seen in 2024.
Ether-focused ETFs told a different story.
Spot Ether funds pulled in $9.6 billion during 2025, a fourfold increase compared to the previous year.
The jump reflected the fact that Ether ETFs only launched midway through 2024.
As a result, 2025 marked their first full year of trading.
New products also expanded the market beyond Bitcoin and Ether.
Spot Solana ETFs entered the US market in late October and have already accumulated $765 million in inflows.
Regulatory changes played a role in the expansion.
A more crypto-friendly US administration and new leadership at the Securities and Exchange Commission helped speed up approvals.
That environment encouraged institutional investors to explore regulated crypto exposure.
BlackRock strengthens its dominance
BlackRock emerged as the clear leader in the crypto ETF space.
Its iShares Bitcoin Trust ETF recorded $24.7 billion in inflows by year-end.
The total is roughly five times larger than that of its closest rival, Fidelity’s Bitcoin fund.
The scale of demand placed IBIT among the top six ETFs of any kind by net inflows.
Bloomberg analyst Eric Balchunas highlighted the achievement despite Bitcoin’s price softness during the year.
“If you can do $25b in [a] bad year imagine the flow potential in [a] good year,” he said.
Excluding IBIT, the remaining spot Bitcoin ETFs experienced net outflows of $3.1 billion.
Several funds saw only modest gains, while one major trust shed roughly $3.9 billion.
Ethereum ETFs lose short-term momentum
BlackRock also leads the Ethereum ETF market through its iShares Ethereum Trust.
The fund holds nearly $12.6 billion in inflows overall.
However, it has failed to attract new capital over the past dozen trading sessions.
Rival Ethereum ETFs trail at a significant distance.
Recent on-chain data suggests subdued demand for both Bitcoin and Ether ETFs heading into 2026.
That slowdown may result in a cautious start to the new year.
Wave of new products expected
Litecoin, Solana, and XRP ETFs launched in the second half of 2025.
They expanded investor access to major altcoins through traditional investment vehicles.
Analysts expect far more products to follow.
Revised SEC listing standards could allow more than 100 crypto ETFs to launch in 2026.
Bloomberg analyst James Seyffart warned that many may struggle to survive.
“We’re going to see a lot of liquidations in crypto ETP products,” he said.
“Might happen at [the] tail end of 2026 but likely by the end of 2027.”
Blockchain analysts monitoring the Official Trump TRUMP memecoin on Solana have flagged substantial liquidity movements linked to project-associated wallets.
Over the past month, addresses labeled as part of the “Official Trump Meme” cluster have moved roughly $94 million in USDC out of TRUMP liquidity pools.
The latest transaction occurred on Tuesday, when approximately $33 million in USDC was withdrawn from liquidity.
Blockchain data platform Arkham reported that the funds were sent to an entity labeled Fireblocks.
From there, the stablecoins were routed onward to wallets labeled as belonging to Coinbase.
Public Solana records visible on Solscan corroborate the scale and timing of the USDC outflows from TRUMP-linked addresses.
A dramatic rise and fall
The transfers cap a volatile year for TRUMP, which launched on Jan. 18, just days before the US president’s inauguration.
The token surged rapidly, reaching an all-time high of $75.35 on Jan. 19.
From that peak, prices steadily unwound throughout the remainder of the year.
According to market data, TRUMP is now trading below $5.
That represents a decline of nearly 90% from its highs, leaving many late buyers facing steep losses.
Despite those losses, the token’s structure and trading activity have generated more than $320 million in fees for insiders and related entities.
What the transfers may mean
Onchain data alone cannot definitively establish who controls every wallet labeled within the Trump meme cluster.
Nor can it conclusively explain the purpose behind routing funds through Fireblocks toward Coinbase.
Such movements could reflect treasury management, tax planning or the settlement of offchain obligations.
However, for a politically branded asset closely tied to the image of a sitting US president, repeated large liquidity withdrawals attract attention.
Stablecoin movements of this scale naturally raise questions around transparency and governance.
Political scrutiny intensifies
The scrutiny is not limited to the crypto community.
Earlier this year, Democratic Party lawmakers formally requested details from the US Treasury Department regarding Trump’s crypto ventures.
The inquiry sought clarification on associated financial arrangements and potential conflicts of interest.
That political backdrop means that activity linked to the TRUMP token is being examined through both regulatory and partisan lenses.
A harsh year for memecoins
The broader memecoin sector in 2025 has provided little relief.
Major tokens such as Dogecoin, Shiba Inu and Pepe retained significant market capitalizations but ended the year far below their local peaks.
A long tail of smaller Solana and Ethereum-based memecoins experienced similar patterns.
Many election-themed and personality-driven tokens saw explosive early rallies followed by 80% to 90% drawdowns.
As liquidity thinned, exits became increasingly difficult for late participants.
At the time of publication, the TRUMP memecoin team had not responded to questions seeking clarification on the recent USDC transfers.
Cryptocurrency adoption is widely expected to accelerate sharply in 2026, with industry observers pointing to a convergence of maturing technology, clearer regulation, and expanding real-world use cases as key drivers. After years of being viewed primarily as a speculative asset class, crypto is increasingly positioning itself as practical digital infrastructure capable of supporting payments, commerce, entertainment, and financial services on a global scale.
While market cycles will continue to influence prices, the next phase of crypto growth appears less dependent on hype and more rooted in everyday utility. This shift could see millions of new users entering the ecosystem, not to trade tokens, but to use blockchain-based tools in their daily lives.
From Investment Asset to Everyday Utility
One of the strongest signals pointing to increased adoption in 2026 is the growing emphasis on functional use cases rather than price speculation. Stablecoins, for example, are becoming central to crypto’s value proposition. Pegged to fiat currencies, they offer price stability while retaining the speed and borderless nature of blockchain transactions.
Stablecoins are increasingly used for cross-border payments, remittances, payroll, and business-to-business settlements. Compared to traditional banking rails, crypto-based transfers can settle in minutes rather than days and at a fraction of the cost. For individuals and businesses operating internationally, this efficiency is difficult to ignore and is expected to drive further adoption.
Beyond payments, decentralized finance platforms are continuing to evolve, offering services such as lending, borrowing, and yield generation without relying on traditional intermediaries. While still developing, these systems are becoming more user-friendly and better regulated, lowering the barrier to entry for mainstream users.
Tokenization and Digital Ownership
Another major catalyst for crypto adoption in 2026 is the tokenization of real-world assets. Tokenization allows physical or traditional financial assets — such as real estate, equities, commodities, or intellectual property — to be represented digitally on a blockchain.
This approach improves liquidity, enables fractional ownership, and reduces settlement times. For retail investors, tokenization can open access to asset classes that were previously difficult or impossible to enter. For institutions, it offers operational efficiencies and improved transparency.
As infrastructure improves and legal frameworks mature, tokenized assets are expected to move from niche experiments to mainstream financial products, further embedding blockchain technology into the global financial system.
Institutional Confidence and Regulatory Progress
Institutional involvement continues to play a significant role in legitimizing crypto for wider audiences. Major financial firms, payment providers, and technology companies are increasingly building crypto-related products or integrating blockchain solutions into their operations.
At the same time, regulatory clarity — while uneven across regions — is gradually improving. Clearer rules around custody, compliance, and consumer protection reduce uncertainty for both users and businesses. This environment encourages innovation while addressing long-standing concerns around risk and misuse.
As regulation becomes more predictable, it is likely to unlock further institutional participation, which in turn boosts confidence among retail users. Meanwhile, crypto influencers are continuing to play an important role in the growing adoption of crypto and blockchain worldwide.
Crypto Payments and Digital Identity
Consumer-facing applications are expected to be a major driver of adoption in 2026. Crypto payments are becoming easier to use through improved wallets, payment gateways, and integration with existing point-of-sale systems. For online commerce, crypto offers faster settlement and lower fees, particularly for international transactions.
Another emerging use case is digital identity. Blockchain-based identity solutions allow individuals to control their credentials and share only what is necessary, reducing fraud and improving privacy. These systems have potential applications across finance, healthcare, education, and online services, making crypto relevant to a much broader audience.
The Growing Role of Crypto in Online Casinos
One sector where crypto adoption is already accelerating is online gambling, particularly crypto-based casinos. These platforms leverage blockchain technology to offer faster payments, enhanced privacy, and greater transparency compared to traditional online casinos.
Crypto casinos allow players to deposit and withdraw funds almost instantly using digital currencies, avoiding the delays and fees often associated with banks and card providers. This is especially appealing in regions where access to conventional payment systems is limited or heavily restricted.
The use of blockchain also introduces provably fair gaming systems. By recording game outcomes on a public ledger or using smart contracts, crypto casinos can demonstrate that results are not manipulated, addressing long-standing trust issues in online gambling. Sweeps casino are also poised to benefit and grow in 2026.
Challenges Remain, but Momentum Is Building
Despite the optimism, challenges remain. Volatility, security concerns, and inconsistent regulation still pose obstacles to mass adoption. User education also remains critical, as many potential users are unfamiliar with wallet management and blockchain mechanics.
However, the overall trajectory points toward continued growth. Improved user interfaces, stronger security standards, and clearer rules are steadily addressing these concerns, making crypto more approachable for non-technical audiences.
Looking Ahead to 2026
By 2026, crypto is expected to be less about speculation and more about infrastructure. Payments, tokenized assets, digital identity, and entertainment platforms like online casinos are collectively pushing blockchain technology into everyday use.
As adoption expands across industries and demographics, crypto’s role in the global economy is likely to deepen. What was once considered a niche experiment is increasingly becoming a functional layer of the digital world — setting the stage for a significant surge in users and use cases in the year ahead.
Spot Bitcoin exchange-traded funds experienced heavy withdrawals during Christmas week, with investors pulling hundreds of millions of dollars from US-listed products despite relatively stable Bitcoin prices.
Data shows that a combined $782 million flowed out of spot Bitcoin ETFs over the holiday period, marking one of the most pronounced short-term pullbacks since the products launched earlier this year.
The largest single-day outflow occurred on Friday, when ETFs tracking Bitcoin recorded $276 million in net redemptions.
BlackRock’s IBIT led the declines, with nearly $193 million leaving the fund in one session, while Fidelity’s FBTC saw $74 million in outflows.
Grayscale’s GBTC continued its longer-running pattern of smaller but persistent redemptions during the same period.
As a result, total net assets held across US spot Bitcoin ETFs fell to approximately $113.5 billion by the end of the week, down from levels above $120 billion earlier in December.
This decline occurred even as Bitcoin traded near the $87,000 level, showing little immediate price reaction to the ETF withdrawals.
Longest outflow streak since autumn
Friday’s withdrawals extended a negative trend that has now lasted six consecutive trading days, making it the longest stretch of ETF outflows since early autumn.
Across that six-day window, cumulative net outflows exceeded $1.1 billion, highlighting a clear pause in institutional inflows after months of strong demand.
Market participants note that holiday periods often exaggerate flow data due to thinner liquidity and reduced trading desks.
Vincent Liu, chief investment officer at Kronos Research, said the Christmas timing was a key factor behind the recent moves.
“As desks return in early January, institutional flows typically re-engage and normalize,” Liu said.
He added that Bitcoin ETF outflows during late December should not be interpreted as a structural shift in demand.
Expectations turn toward January and beyond
Looking ahead, Liu expects conditions to improve as institutions return from the holidays and capital allocation patterns reset for the new year.
He also pointed to macroeconomic factors that could become supportive for crypto-linked investment products.
“Rates markets are already pricing ~75–100 bps of cuts, pointing to easing momentum. Next, bank-led crypto infrastructure keeps scaling, reducing friction for large allocators,” Liu said.
Despite that optimism, some analysts see the recent data as part of a broader cooling trend.
Glassnode has reported that both Bitcoin and Ether ETFs have entered a sustained phase of net outflows, with the 30-day moving average of flows remaining negative since early November.
Because ETFs are widely viewed as a proxy for institutional sentiment, prolonged withdrawals may signal a period of reduced appetite for crypto exposure as overall market liquidity tightens.
Ether has failed to maintain prices above $3,400 for more than 40 days, prompting concerns that bearish pressure may persist.
The extended weakness has left traders increasingly cautious about the near-term outlook.
ETH has faced repeated rejections at higher resistance levels, reinforcing the perception that sellers remain in control.
Options Expiry Adds Pressure to Market
Approximately $6 billion in Ether options are set to expire on Friday.
Call options currently outnumber put options by a factor of 2.2.
Despite this imbalance, bears maintain the advantage unless ETH breaks above $3,100.
Many bullish traders had expected Ether to trade at $4,000 or higher by year-end.
Those expectations were undermined by a sharp 28% price drop in November.
Ether’s price at 8:00 am UTC on Friday will be a critical reference point for determining which side benefits most from the expiry.
Bullish Bets Clustered at Higher Levels
Most of the $4.1 billion in call options are likely to expire worthless.
A large portion of bullish bets were concentrated between $3,500 and $5,000.
Less than 15% of call options were positioned at $3,000 or lower.
Even when excluding extremely optimistic strikes above $5,000, fewer than 25% of call options were placed below $3,200.
Some traders routinely sell covered calls at much higher strike prices with little expectation of those levels being reached.
Bears Still Hold Tactical Edge
Bearish positioning has also been aggressive, with many bets clustered between $2,200 and $2,900.
If Ether trades above $2,950 on Friday, more than 60% of put options would expire worthless.
However, bearish strategies remain better positioned as long as ETH stays below $3,200.
This keeps downward pressure firmly in place unless bulls can force a late move higher.
Macro Concerns Weigh on Sentiment
Investor sentiment was further shaken by reports surrounding weaknesses in the US semiconductor sector.
News that Intel struggled to advance its domestic chip manufacturing efforts contributed to broader risk aversion.
According to reports, Nvidia halted production tests tied to Intel’s manufacturing processes.
These developments reduced optimism around the economic impact of artificial intelligence in the US.
$3,100 Seen as Pivotal Level
Options data points to $3,100 as a crucial threshold for Ether bulls.
Below $2,900, options outcomes strongly favor put holders.
Between $3,101 and $3,200, results become more balanced.
Prices above $3,200 would begin to tilt the outcome in favor of call options.
A push toward $3,100 could help stabilize sentiment and distance Ether from its December lows near $2,775.