Why Crypto’s Next Move Could Shock Markets ⋆ ZyCrypto

On CNBC’s Halftime Report, Joe Terranova, Senior Managing Director at Virtus Investment Partners, noted that the crypto market’s recent ups and downs are driven by profit-taking from year-end positions, not a traditional Santa rally, signaling caution for investors expecting a sustained bullish surge.

Terranova observed that investors entered December with excessive optimism, prompting a market correction after prolonged gains. 

While a Santa rally usually depicts a holiday-driven price boost, he acknowledged that this year’s uptick was more illusory than a true seasonal surge.

The analyst noted that heightened expectations from traders and institutions drove crypto prices up, but as profits were realized, a natural pullback triggered short-term selling pressure across major coins. This profit-taking phase, while normal, fuels volatility and tests investor sentiment, as nearly half of XRP holders are now in the red.

Looking to 2026, Terranova warns of heightened market unpredictability, signaling a shift away from traditional buy-and-hold strategies. 

He said that next year favors short-term, tactical trading, emphasizing the need for active portfolio management and quick responses to price swings. Investors will need nimble strategies to navigate emerging trends and manage risk effectively.

Well, this shift highlights the crypto market’s maturation, as institutional activity and macroeconomic forces increasingly drive price movements. 

Bitcoin, for example, stayed below the $90,000 mark on Christmas, defying typical year-end rallies. Terranova emphasizes that, heading into 2026, disciplined, cautious strategies will be essential for navigating this evolving landscape.

Therefore, December’s crypto activity reflects profit-taking rather than a Santa rally, signaling that 2026 will favor nimble, tactical trading over traditional buy-and-hold strategies.