Anbruggen Capital Crypto Pulse

Bitcoin is trading around $88,000–$90,000 as of mid-December, reflecting ongoing consolidation after the sharp correction from its all-time high near $126,000 earlier in the year. Ethereum hovers near $3,100, while the total crypto market capitalization stands around $3.1–$3.2 trillion, down significantly from peaks but stabilizing amid improved sentiment. The Federal Reserve's third rate cut of the year this December, bringing the funds rate to 3.50%–3.75%, has provided some relief, though policymakers signaled a more cautious path for 2026 with potentially fewer cuts. Short-term volatility persists due to AI-related equity concerns and year-end positioning, but global liquidity trends are turning supportive heading into 2026, with M2 supply nearing record highs.

This issue reviews recent developments, macro drivers, and updates our chartbook. Contact us at [email protected] to discuss positioning for the potential rebound ahead.

Latest News 

Federal Reserve Delivers Third Rate Cut but Signals Pause Ahead

• The Fed cut rates by 25 basis points in December, marking the third reduction of 2025, amid a divided committee and concerns over persistent inflation. Projections now indicate only limited easing in 2026.

Our Take: While the cut supports risk assets like crypto in the near term, the hawkish tilt reinforces a "wait-and-see" stance. However, resuming Treasury purchases and global central bank easing point to expanding liquidity in 2026, historically bullish for Bitcoin and quality assets. Anbruggen Capital monitors Fed statements and liquidity metrics closely to adjust exposures dynamically.

Michael Saylor's Strategy Resumes Aggressive Bitcoin Accumulation

• Strategy (MSTR) added over 10,000 BTC in early December, bringing holdings to 660,624 BTC despite market weakness. Executive Chairman Michael Saylor reaffirmed the long-term treasury strategy amid index inclusion concerns.

 Our Take: Strategy's continued buying demonstrates conviction in Bitcoin's scarcity during dips. Public disclosures and cash reserves reduce forced-selling risks, even in prolonged downturns. Corporate adoption trends remain a structural tailwind, though pro-cyclical share premiums can amplify volatility.

 Zcash Gains Traction Amid Privacy Regulatory Discussions

• Zcash has outperformed in December, supported by institutional interest, network upgrades, and an upcoming SEC roundtable on privacy technologies featuring founder Zooko Wilcox. Proposals for dynamic fees aim to improve usability.

 Our Take: Renewed focus on financial privacy, combined with shielded transaction growth and treasury vehicles like Cypherpunk, underscores Zcash's niche strength. Regulatory engagement could clarify paths forward, potentially unlocking broader adoption in a maturing market.

 

Global Macro View

The Fed's December cut and resumption of Treasury purchases signal ongoing dovish underpinnings, despite caution on further easing. Global M2 liquidity is approaching $130 trillion highs, driven by coordinated policies, setting the stage for re-acceleration in 2026. Crypto's correlation with risk assets has increased in 2025, amplifying drawdowns from AI equity worries and leverage unwinds. Yet, historical patterns show outsized Bitcoin returns during liquidity expansions. With institutional infrastructure maturing and ETF flows providing floors, the medium-term setup remains constructive despite near-term consolidation.

 Crypto Spotlight

 

ETH/BTC Chart showing impressive relative strength

ETH has been outperforming Bitcoin during the current market consolidation – ETH/BTC has broken out upwards of a “bullish pennant” pattern and is holding above its 200-day moving average.

The recent Fusaka upgrade enhanced scalability with PeerDAS, boosting blob capacity and slashing Layer 2 fees, catalyzing DeFi and real-world asset (RWA) tokenization activity. Growing staking dynamics, corporate treasury adoption of ETH, and bridges like xBridge for cross-chain assets reinforce Ethereum's utility narrative over Bitcoin's primary store-of-value role.

Chartbook

Bitcoin (BTC)

Bitcoin is consolidating between $85,000 - $95,000 and holding the 100-week moving average will be key for the bellwether crypto to stage a decisive bullish reversal.

 

Ethereum (ETH)

Similar to the ETH/BTC, the ETH/USD chart has also broken up a “bullish pennant” chart pattern which might lead to further upside. Closing above the 50-day moving average will be key for Ethereum to restart its uptrend.

 

Solana (SOL)

SOL seems to be finding support at its key $110-$125 support zone. Any convincing recovery should happen around this area, and going below the zone might hint at further downside.

 

 

Looking Ahead

Year-end positioning and holiday liquidity may extend volatility into early 2026, but improving global liquidity conditions and institutional maturation provide a favorable backdrop. Bitcoin's role as a scarcity hedge strengthens amid debasement risks, while high-conviction ecosystems benefit from real-world adoption. We remain cautiously optimistic on Bitcoin and select altcoins for 2026. Reach out at [email protected] to explore tailored positioning.

 

Disclaimer: Investing in cryptocurrencies involves significant risk. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.