The market took a hit, shedding about 2% with total cap dipping to around $2.96 trillion. Bitcoin hovered below $88,000 after failing to hold $90,000, down roughly 1.7%, while Ethereum lingered near $2,973, off 0.6%. Altcoins like Cardano's NIGHT token plunged 22%, and overall volatility spiked amid thin holiday liquidity and options expiries.
Liquidations were brutal—over $270 million wiped out, split nearly even between longs ($135M) and shorts ($135M). This forced selling amplified the downturn, clearing weak hands but signaling trader caution.
On the political front, Trump-related headlines dominated: talks of a 2026 crypto bailout, his World Liberty Financial project hitting Justin Sun for millions in losses, and the 2025 boom fizzling amid stalled regulations. While Trump's pro-crypto stance fueled earlier hype, these updates bred uncertainty—easing oversight cheered the industry, but fears of policy reversals and trade wars triggered sell-offs, eroding confidence and boosting volatility.
Bottom line: Politics adds fuel to the fire, but resilience could emerge if buyers step in. Stay vigilant—crypto winters test the tough.