Market Report: Top 5 cryptocurrencies by decline on December 31, 2025, with the largest drop being Morpho

Bitcoin futures and options markets are cautious, with annualized premiums dropping to 2%, warning of upward resistance

Bitcoin recently tested the $70,000 level, but the futures and options markets show that traders are cautious about a rebound. The annualized futures premium is only 2%, while the put option premium reaches 14%, indicating a strong market sentiment of risk aversion to downside. Recently, Bitcoin's decline has been related to concerns over quantum computing, liquidation events in the crypto market, and other factors. Additionally, ETF capital inflows remain steady into the spot market, but there is a divergence in sentiment between the derivatives market.

Altcoin Dominance Nears 5-Year Breakout — 5 Tokens Poised for 20% Moves This Week

Altcoin dominance is nearing a five-year resistance level, historically linked to capital rotation. Five tokens show tightening volatility structures that often precede 20% weekly moves. Confirmation above resistance remains essential before sustained upside can be

"Buy Bitcoin" Google searches hit a five-year high, Trump’s one statement liquidates $120 million in shorts

This week, global searches for "buy Bitcoin" reached the highest level in nearly five years, reflecting a renewed investor willingness to enter the market. Influenced by Trump's State of the Union proposal to ban congressional stock trading, market sentiment quickly improved, leading to a large-scale short squeeze. On-chain data shows an increase in whale holdings and strengthened accumulation signals, suggesting the market may be facing a turning point, but multiple factors need to be considered to determine the price trend.

Why did Bitcoin drop today? Increased uncertainty in US-Iran nuclear negotiations, and the $71,000 fake breakout exposed the essence of short squeeze.

Bitcoin recently retreated from $71,000 to $67,000, mainly due to false breakouts caused by forced short liquidations and increased market risk premium from ongoing uncertainties in US-Iran nuclear negotiations. On the technical side, $71,000 is a major resistance level; if it cannot be effectively broken through, it will impact the short-term trend. The decline in open interest indicates market deleveraging, and the price increase lacks sustainable support.

Today, the Fear & Greed Index rose to 13, indicating the market is in a "Extreme Fear" state.

Foresight News reports that, according to Alternative.me data, the cryptocurrency fear and greed index rose to 13 today (yesterday the index was 11 "Extreme Fear"), indicating that the market is in a "Extreme Fear" state.

BlockTower Capital Founder: Market makers mainly influence intraday volatility; the main reason for BTC's pullback is early holders selling off.

BlockTower Capital founder Ari Paul pointed out that market makers have limited impact on short-term trading in a weak market, mainly because early holders are selling off BTC and the market lacks absorption. He believes that long-term manipulation is unlikely, and investors should optimize their analysis frameworks, as upward momentum is more common.