Market Snapshot: XRP and Solana Emerge as Winners While Bitcoin and Ether Face Selling Pressure

Digital assets displayed mixed performance over the past trading session, with alternative cryptocurrencies showing unexpected resilience amid broader market headwinds.

The Broader Crypto Landscape: Capital Rotation at Play

The cryptocurrency market is experiencing a significant capital rotation, with institutional investors becoming increasingly selective. Crypto investment products saw US$446 million in net outflows last week, marking a continuation of the post-October weakness. Year-to-date cumulative withdrawals have reached US$3.2 billion, according to latest Digital Asset Fund Flows data.

What’s particularly striking is how this capital flight has been unevenly distributed. While Bitcoin and Ether dominated the outflow headlines, a distinct divergence emerged at the altcoin tier, with XRP and Solana defying the broader pullback.

Bitcoin: Consolidating at Support Levels

Bitcoin (BTC) traded around US$91.97K, showing a modest gain of 0.95 percent over the last 24 hours. The flagship cryptocurrency is navigating a phase of consolidation rather than collapse, supported by technical levels near US$86,000.

Current market conditions suggest institutional participation remains measured. Bitcoin ETF assets under management have surpassed US$110 billion as of mid-December, demonstrating sustained institutional interest. However, the character of these flows has shifted. ETF inflows are no longer consistently positive; they’ve become volatile, with some weeks recording net outflows due to portfolio rebalancing and year-end liquidity adjustments.

The funding rate sits at 0.008 percent—a low reading that indicates limited leveraged bullish positioning in derivatives markets. This suggests that any price movement is likely driven by profit-taking rather than aggressive speculation. Liquidations totaling US$1.67 million occurred in the preceding four hours, accompanied by a 0.35 percent decline in open interest to US$57.54 billion, reflecting deleveraging among overleveraged traders.

Market analysts expect Bitcoin to enter a stability and accumulation phase in Q1 2026 rather than delivering a strong upside surprise. Regulatory tailwinds, normalization of US monetary policy, and improvement in geopolitical risk sentiment would be required to spark a recovery toward US$100,000. The underlying structural foundation—built on institutional adoption and broader financial system integration—remains solid, setting the stage for potential reopening once conditions align.

Ether: Slight Decline but Holding Ground

Ethereum (ETH) was quoted at US$3.13K, down 0.15 percent over 24 hours. The world’s largest smart contract platform continues to track sideways as traders assess both the macroeconomic backdrop and Ethereum-specific narratives around scaling and application development.

The Altcoin Story: XRP and Solana Defy the Trend

In sharp contrast to the Bitcoin-Ether selloff, alternative cryptocurrencies demonstrated unexpected strength:

• XRP (XRP) declined 0.42 percent to US$2.09, yet continued attracting capital inflows
• Solana (SOL) advanced 2.05 percent to US$142.98, solidifying its position as a market outperformer

The divergence is most visible in ETF flows. XRP and Solana pulled in US$70.2 million and US$7.5 million in weekly inflows respectively, bucking the broader crypto fund outflow trend. By late December, XRP’s ETF products had accumulated over US$1 billion in cumulative inflows since launch, while Solana ETFs surpassed the US$750 million mark.

This capital reallocation reflects investor appetite for concentrated exposure to alternative Layer-1 blockchain networks and their ecosystems.

Key Developments Shaping the Market

Institutional Bitcoin Accumulation Continues

Strategy announced a significant Bitcoin acquisition, purchasing 1,229 BTC between December 22-28 for approximately US$108.8 million. This brings its total Bitcoin treasury to 672,497 BTC, underscoring the ongoing institutional appetite for the cryptocurrency as a store of value.

China Expands Digital Yuan Adoption Framework

The People’s Bank of China introduced interest-bearing digital yuan (e-CNY) wallet functionality effective January 1, 2026. Commercial banks can now offer deposit-like returns on wallet balances, marking a strategic pivot from positioning e-CNY merely as digital cash to treating it as a financial instrument with yield characteristics. This move aims to accelerate everyday adoption and financial inclusion.

Regulatory and Audit Scrutiny Intensifies

ALT5 Sigma faced renewed regulatory scrutiny when its newly appointed auditor was found to lack an active Texas firm license. The auditor switch occurred after the company missed its Q3 filing deadline. No audits will proceed until licensing is resolved, with a mandatory peer review expected to conclude by month-end. This highlights ongoing compliance challenges within the sector.

Geopolitical Considerations: Energy and Mining

Representatives from the Russia-controlled Zaporizhzhia nuclear power plant indicated preparedness to supply electricity to Bitcoin mining operations, contingent on achieving a broader peace settlement with Ukraine. The comments reflect discussions between Russian and American officials about alternative uses for the facility’s substantial electricity capacity.

What This Means Going Forward

The market is undergoing a transition from the euphoric growth phase of early 2025 to a more mature, institutionally-influenced consolidation phase. Capital flows are becoming more discerning, with investors rotating toward platforms demonstrating stronger ecosystem activity and clearer growth catalysts.

Bitcoin’s structural fundamentals remain intact, but near-term momentum depends on resolving macro uncertainties. Meanwhile, the XRP and Solana surge illustrates investor confidence in specific alternative chains, suggesting differentiation within altcoins is accelerating.