Crypto Market Edges Higher as Bitcoin Consolidates Below Key Resistance; AI Tokens Deeply Corrected

Market snapshot: The cryptocurrency market is trading slightly higher as investors digest mixed signals across macro and on-chain fronts. Total market capitalization has risen by around $3.04 trillion (+~0.7%) while 24-hour trading volume is near $69.9 billion. Market sentiment remains cautious, with the Crypto Fear and Greed Index lingering in the fear zone at 28.

Price action and levels to watch — Bitcoin: Bitcoin (BTC) continues to consolidate below important resistance levels after failing to sustain higher moves in recent sessions. At the time of the report BTC is trading near $87,400. Short-term support has formed in the $86,000–$87,000 zone, which buyers are defending. A decisive reclaim and hold above $88,000 could unlock momentum toward $90,000 and potentially $92,000. Conversely, a clean break below $86,000 would expose BTC to a drop toward $84,000 and deeper support around $82,000.

Price action and levels to watch — Ethereum: Ethereum (ETH) remains range-bound under the psychologically important $3,000 level and is trading around $2,924. Volume is muted, indicating traders are waiting for a clearer directional catalyst. Near-term resistance sits around $2,980–$3,000; a sustained breakout above this range could target $3,150. On the downside, initial support is near $2,800, with additional support toward $2,700 if sellers reassert control.

Winners & losers: Most major caps traded green on the day. Notable movers include BNB, XRP, SOL and DOGE showing modest gains. Leading gainers among smaller-cap and speculative tokens included Beefy (BIFI) with a surge of roughly 197%, ZER0BASE up ~70% and Minidoge up ~73%. Downside among large-caps was limited: ADA, WBT and TRON showed modest weakness.

AI token collapse: The once-hot artificial intelligence–focused crypto sector has entered a deep correction. Data compiled by Company CryptoPresales.com shows AI tokens have lost roughly 75% year-over-year, erasing an estimated $53 billion from the market. The rapid de-risking highlights how speculative sectors can reverse sharply once investor appetite fades.

Macro and narratives: Markets briefly perked up after comments from Mr. Elon Musk suggesting the US economy could enter a rapid growth phase from late 2026, possibly reaching double-digit GDP expansion. Although the remarks were aimed at macro outlook rather than crypto specifically, traders often interpret improving macro liquidity and risk appetite as supportive for scarce assets like Bitcoin. Some market observers such as Mr. Anthony Pompliano argue that stronger growth can create a favorable backdrop for digital scarcity narratives.

ETF flows & institutional interest: US spot Bitcoin ETFs recorded net outflows of about $175.3 million on Dec. 24. Outflows were broad-based: Company BlackRock's IBIT led with $91.37 million, followed by Company Grayscale's GBTC (~$24.62 million) and Company Fidelity's FBTC (~$17.17 million). US spot Ether ETFs also posted net outflows (~$52.7 million) led by Company Grayscale's ETHE (~$33.78 million) and Company BlackRock's ETHA (~$22.25 million), while the Company Grayscale ETH trust recorded a small inflow (~$3.33 million).

Regulatory & infrastructure updates: Russian exchanges have signaled readiness to open regulated crypto trading as legislation advances. Company Moscow Exchange and Company St. Petersburg Exchange confirmed they will be ready to launch trades once the legal framework is implemented by mid-2026, following a regulatory concept released by the Company Bank of Russia.

What this means for traders: The current environment favors disciplined, level-based trading. For BTC and ETH, monitor $86,000–$88,000 and $2,800–$3,000 respectively. The combination of ETF outflows, cautious sentiment, and sector-specific corrections (notably AI tokens) suggests limited conviction among buyers. Position sizing, clear stop levels and attention to macro liquidity events remain essential. Expect continued consolidation until a catalyst — either renewed ETF inflows, macro rate cut clarity, or a fresh on-chain development — shifts market conviction.