Bitcoin steadies at $87,000 as low trading volumes in year end pull back assets

Bitcoin traded near the $87,000 mark on Tuesday, setting a subdued tone across cryptocurrency markets as year-end activity slowed and investors weighed longer-term structural shifts in the sector.

While short-term price action remained muted, analysts and industry figures are increasingly focused on whether crypto’s long-standing four-year cycle is breaking down and what that could mean heading into 2026.

Crypto markets consolidate amid year-end slowdown

Bitcoin, at the time of writing, was trading at $87,392, down 2.4% on the day, while ether fell 2.2% to $2,947 and XRP slipped 1.9% to $1.85.

The total cryptocurrency market capitalization declined 2.59% to $2.96 trillion.

According to Jake Kennis, senior research analyst at Nansen, trading conditions have softened as the year draws to a close.

He said in a CryptoNews report that Bitcoin and Ethereum have largely traded sideways over the past week, reflecting seasonal inactivity rather than a structural change in the market.

On-chain activity has also cooled, with consolidation in active addresses, transactions, and fees over the past month.

Kennis noted that networks such as Base experienced pullbacks in decentralized exchange volumes after a strong run earlier in the year.

Solana continues to dominate on-chain trading by volume, though user activity has eased slightly, while BNB Chain remains a distant second.

Overall, he said trading has slowed and become more selective rather than disappearing altogether.

Long-term outlook centers on durability and adoption

Looking beyond near-term consolidation, Haseeb Qureshi, managing partner at crypto venture firm Dragonfly, expects 2026 to reinforce long-running trends rather than reset the market.

In a recent X post, Qureshi argued that durability, distribution, and real-world usage are taking precedence over rapid experimentation.

Qureshi expects bitcoin to finish 2026 above $150,000, even as it accounts for a smaller share of the total crypto market.

He views that combination as evidence that activity elsewhere could expand without displacing bitcoin’s role as the sector’s anchor asset.

He was more cautious on newer fintech-branded blockchains, suggesting that enthusiasm may not translate into sustained usage.

Instead, he expects developer activity to remain concentrated on neutral and composable infrastructure, with Ethereum and Solana continuing to outperform relative to expectations.

He also anticipates deeper corporate involvement, particularly in payments and financial services, with at least one major technology company launching or acquiring a crypto wallet.

Four-year cycle debate intensifies

The outlook comes amid growing debate over whether crypto’s traditional four-year cycle, tied to Bitcoin halving events, is still relevant.

Historically, halvings were followed by a bull run peaking around 18 months later, then a sharp correction and prolonged bear market.

Some analysts argue that institutional participation through exchange-traded funds, corporate treasuries, and improved market infrastructure has weakened this pattern.

Nick Ruck, director of LVRG Research, said in a CoinTelegraph report that sustained institutional demand has reduced volatility and softened post-peak crashes, potentially extending the bull market into 2026.

Others, however, believe the cycle remains intact.

Markus Thielen, CEO of 10x Research, has said bitcoin entered a bear market in late 2025, pricing in a slowing economy. Analysts, including “Rekt Capital” and PlanB have also suggested that expectations around the cycle may be driving selling pressure.

Major institutions remain optimistic.

Grayscale has forecast a new bitcoin all-time high in the first half of 2026, while Standard Chartered now expects bitcoin to reach $150,000 by the end of that year.

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