Recently, the Christmas atmosphere in the crypto world has been at its peak, but the market is a bit cold: BTC is trading sideways between 86k-88k, after hitting an all-time high of 126k and then retracing completely, resulting in a small loss for the year; altcoins are even worse, with most halving or going to zero.

The so-called institutional bull market is not quite what it seems; retail investors are being thoroughly exploited by high FDV and leverage. The main hot topics in quality content are: Institutional & Regulatory Benefits: the US GENIUS Act passes, stablecoin compliance takes off, market cap exceeds 300 billion+, with USDC and others becoming mainstream payment tools.

RWA tokenization exceeds 30 billion, with government bonds and funds going on-chain, as major players like BlackRock and Circle aggressively absorb liquidity.

Lesson: retail investors should stop chasing narratives; cash flow and compliance are the real keys. Stablecoins and RWA dominate: these two are the fundamental pillars, and institutional marginal buying depends entirely on them. Ethena TVL has been halved, DeFi yields are declining, reminding everyone not to blindly trust high APY, as macro interest rate changes can cool the market.

AI + Crypto remains hot: agents and decentralized infrastructure have breakout hits, but most go to zero. Highlights for 2026: real adoption, don’t go all-in on concept coins anymore. Market sentiment & 2026 outlook: low liquidity during holidays, options expirations may amplify volatility.

Most predictions expect BTC to rebound next year, but don’t expect a repeat of the previous crazy bull run. VanEck/Galaxy and others are watching stablecoin/DeFi expansion, with privacy coins on the rise. Traders are shouting: strict risk control, discipline > strategy.