Crypto venture investment surged in 2025, peaking at about $10 billion in Q2 and staying near $8 billion in Q3 and Q4. Yet CryptoRank data shows many newly listed tokens now trade far below private-round valuations, with drops from $1 billion to around $285 million and from $400 million to $15–16 million.

AMLBot's on-chain study covering 2023–2025 reports Tether froze more than $3.29 billion in USDT and blacklisted 7,268 addresses across Ethereum and Tron, while Circle's USDC freezes totaled $109 million over 372 addresses. The gap was amplified on Tron, where $1.75 billion in USDT sits in blacklisted wallets. The findings underscore contrasting enforcement practices among leading stablecoin issuers.

In January 2024, spot Bitcoin ETFs were approved, followed by a $10 cross‑sector test at the cycle's start. Results ranged from $28 in winners to just $1.20 in laggards amid capital concentrating in regulated products. Bitcoin set an October all‑time high above $126,000 and later traded near $88,000.

In 2025, governments shifted crypto into formal policy, led by actions outlined on December 25. The U.S. moved to a Strategic Bitcoin Reserve, the UAE enforced VARA and ADGM rules, and El Salvador kept holdings after ending legal tender, lifting reserves to roughly 7,500 BTC. Pakistan allocated 2,000 megawatts for mining, while Europe and Brazil tightened oversight, including an $18 million central bank stake in Coinbase.

On December 26, the USX stablecoin on Solana sharply lost its dollar peg, plunging to $0.10 amid a severe liquidity shortage before recovering. Developer Solstice said the depeg was confined to secondary markets and that backing reserves stayed fully collateralized with 1:1 redemptions still available, as the price later rebounded close to $1.00 after market makers added liquidity.

On December 24, 2025, Ethereum's on-chain usage reached a new record even as ETH traded around $3,000 and remained well below prior peaks. Network data point to surging transactions driven in part by Layer-2 settlements, growing DeFi usage, and large holders accumulating, while recent exchange inflows and subdued price action highlight ongoing liquidity pressures.

On Christmas Day, Bitcoin briefly showed a drop to $24,111 on Binance's thinly traded BTC/USD1 pair while major pairs kept trading far higher. The move lasted only a few seconds before arbitrage bots restored the price, highlighting liquidity risks on obscure trading venues rather than a broad market collapse.

On December 25, Bitcoin briefly fell under $87,000 during thin Christmas trading as ETF withdrawals and weak liquidity pressured prices, according to XWIN Finance. Its Trend Index printed 34/100 and the Fear and Greed Index hit 24. Net outflows were about 2,900 BTC (~$251 million), while Ethereum funds remained net negative on the week.

As 2025 approaches its end, Wintermute reports that crypto markets remain volatile, with sharp derivatives-driven selloffs pushing Bitcoin briefly under $85,000 and Ethereum below $3,000 last week. Daily liquidations hit roughly $600 million on Monday and about $400 million on both Wednesday and Thursday, while Bitcoin's struggle around $90,000 leaves it facing a near-24% fourth-quarter decline.