The Crypto Market Is Entering a New Phase — Binance Research
In November, Bitcoin’s share of the total cryptocurrency market capitalization declined to 58.7%, while Ethereum’s share fell to 11.6%. Traders and investors were affected by the decline in share prices of artificial intelligence operators, as well as uncertainty surrounding the timeline for interest rate cuts by the U.S. Federal Reserve (Fed) next year.
Spot Bitcoin ETFs recorded their largest outflow since their launch earlier this year in November — nearly $3.5 billion over the past month. For several consecutive weeks, net outflows exceeded $1 billion, Binance Research specialists noted. The price of Ethereum fell by 21.3% in November. The second-largest cryptocurrency by market capitalization was pressured by a broader market correction and profit-taking by some investors ahead of the Ethereum Fusaka upgrade.
As December is considered less liquid than other months, market volatility may increase. Following aggressive profit-taking by investors in November, a short-term technical rebound in Bitcoin and Ethereum is possible, analysts suggested.
In the long term, the main growth catalyst will be the development of exchange-traded funds (ETFs) and further reductions in borrowing interest rates in the United States. In 2026, the decentralized finance and non-fungible token markets are expected to go through a cleansing phase, experts at the crypto exchange believe. Companies holding cryptocurrencies on their balance sheets will have to undergo a stress test of their business model adaptability, according to Binance Research specialists.
Earlier, analysts at the U.S.-based crypto exchange Coinbase stated that the crypto market could enter a recovery phase in the near future and continue the trend in the first quarter of 2026.
See also: "Bitcoin Price: Drops Below $90,000 Amid Market Caution"
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