Table of Contents
- Market Overview and Current Sentiment
- Bitcoin and Ethereum Remain Range-Bound
- Derivatives Activity and Thin Liquidity
- Altcoins Continue to Lag
- What Traders Are Watching Next
Crypto Markets Stay Range-Bound, Traders Wary as Liquidity Remains Thin
Market Overview and Current Sentiment
Cryptocurrency markets remained subdued on Wednesday as traders continued to adopt a cautious stance amid thin year-end liquidity. With many market participants on holiday break, trading volumes have dropped sharply, keeping price action muted across major digital assets.
Low participation has made the market more sensitive to short-term flows, while uncertainty around macroeconomic data and upcoming derivatives expiries has limited fresh risk-taking. As a result, most cryptocurrencies remain stuck in a consolidation phase.
Bitcoin and Ethereum Remain Range-Bound
Bitcoin slipped slightly and traded near $86,800, extending its recent sideways movement. The world’s largest cryptocurrency has struggled to find direction as investors remain wary ahead of a major options expiry scheduled for Boxing Day.
Ethereum followed a similar trend, easing toward the $2,900 level. Reduced participation and ongoing fund outflows weighed on sentiment, preventing a meaningful recovery despite periods of intraday volatility.
In India, Bitcoin was priced close to Rs. 77.97 lakh, while Ethereum traded around Rs. 2.62 lakh, according to market trackers.
All things considered, the cryptocurrency market is still in a consolidation phase, with Bitcoin and Ethereum serving as anchors amid positions driven by derivatives and holiday-thinned liquidity. The broader altcoin market may continue to lag until risk appetite significantly improves, but a clearer direction is likely to emerge after the options expire and as trading activity normalises.
Derivatives Activity and Thin Liquidity
Analysts point to derivatives positioning as a key factor shaping current market behaviour. Declining futures open interest, tax-loss harvesting, and delayed macroeconomic data have all contributed to subdued risk appetite.
Low liquidity conditions tend to exaggerate short-term price swings, even when there is no clear directional conviction. Market participants are closely watching the upcoming options mega-expiry, which is expected to flush excess leverage from the system.
Experts suggest that once this process is complete and holiday trading volumes normalise, the market may be better positioned for a clearer move.
Commenting on longer-term positioning, Avinash Shekhar, Co-Founder and CEO of Pi42, said, “While short-term volatility persists and downside pressure remains around key technical levels […] Long-term investors should focus on fundamentals, maintain measured exposure consistent with their risk profiles, and view periodic weakness as opportunities to accumulate selectively rather than chase fleeting momentum.”
Providing near-term context, Akshat Siddhant, Lead Quant Analyst at Mudrex, said holiday conditions and derivatives positioning are shaping current price action. “ Uncertainty stemming from delayed Q3 growth data has also encouraged short-term bearish positioning. However, large expiries typically flush excess leverage from the market, creating cleaner conditions for the next move.”
Altcoins Continue to Lag
Altcoins continued to underperform against the cautious backdrop. Binance Coin traded near $837, while Solana slipped toward the $121 level. XRP hovered around $1.84, and Dogecoin remained close to $0.13.
The lack of strong directional momentum in Bitcoin and Ethereum has limited speculative interest in smaller tokens, keeping the broader altcoin market under pressure.
Market participants note that altcoins are unlikely to outperform meaningfully until overall risk appetite improves.
What Traders Are Watching Next
Looking ahead, traders are focused on the year-end options expiry and the return of normal liquidity conditions in early January. Analysts believe that these factors could help establish a clearer trend for the market.
Long-term investors are being advised to focus on fundamentals, manage exposure carefully, and treat periods of weakness as selective accumulation opportunities rather than chasing short-term momentum.
For now, the crypto market remains in consolidation mode, with Bitcoin and Ethereum acting as anchors while liquidity remains thin.
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By The News Update— Updated December 24, 2025
