End-of-year digital asset divergence intensifies, institutional financing returns to a rational pace

【Chain Wen】As December comes to an end, the global markets appear calm on the surface, but undercurrents are surging. The energy sector has been contracting for two consecutive quarters, and the combination of policy uncertainties and slowing capital expenditures indicates that supply-side tensions and price volatility could emerge at any time. While the stock market remains high and AI concepts continue to attract investment, the market is more likely adjusting valuations and pace rather than undergoing a major trend reversal. Investors are becoming more cautious, and divergence is intensifying.

On the digital asset side, the market remains volatile. Bitcoin and Ethereum have recently performed relatively weakly, ETF fund flows are outflows, and market sentiment indicators are not high. Interestingly, the entire market cap system has not experienced a catastrophic decline; instead, there is a clear divergence—funds are flowing from top trending coins to relatively less popular sectors. This indicates that investors are still seeking opportunities but have become more cautious, preferring to explore assets with relatively higher returns under risk control rather than simply capitulating into risk-averse modes.

In terms of financing, nine deals were disclosed this week, totaling approximately $296 million, a slight decrease from last week. The funds are mainly focused on infrastructure and compliance-related areas, reflecting that institutions are particularly cautious at the end of the year—favoring sectors with long-term growth potential and solid compliance foundations. Overall, venture capital activities are returning to a rational pace, which may be laying the groundwork for a structural rebound in early 2026.