Market sentiment has bottomed out, with the Fear & Greed Index dropping to 27, and trading activity significantly declining. Data from December 26th reflects that investors are generally adopting a conservative stance, with many participants choosing to stay on the sidelines and observe for now.

From a fundamental perspective, the total market capitalization of cryptocurrencies exceeds $2.95 trillion, with Bitcoin still holding an absolute dominance at 59.1%. This concentration indicates that market funds are still flowing toward established coins, and retail investors following mainstream trends has become the norm. The probability of the Federal Reserve not raising interest rates in January next year is as high as 84.5% (according to CME data), which sends a positive signal for risk assets.

Divergence is evident across different sectors. In the L1 public chain camp, BNB Chain stands out with the most active daily users and obvious user stickiness. The RWA (Real-World Asset Tokenization) sector performed remarkably well, with an average return of 185.8%, becoming the "printing press" for 2025. In stark contrast is the NFT market, with a market cap of only $2.5 billion in December, down 72% from the beginning of the year, indicating a complete slump.

Ecosystem iteration is also accelerating. Ctrip International launched USDT and USDC payment channels, adding new scenarios for crypto payments. Two leading Russian exchanges are preparing to launch crypto trading services next year, continuing their global expansion. Regarding the potential threat of quantum computing to encryption, industry consensus is that such risks are currently theoretical and there is no need for excessive concern in the short term.

From an investment strategy perspective, bottom-fishing during volatile periods requires caution. The key is to distinguish the true profitability of sectors from hype and concept speculation, rather than blindly chasing the bottom. Bitcoin’s high dominance precisely reflects a trend of funds moving toward certainty; following mainstream coins is often more stable than chasing speculative altcoins. The theoretical threat of quantum computing should not turn into panic in actual operations; fundamental research is always more important than emotional fluctuations.