Analysts at trading firm QCP Capital said that the main problem of the crypto market at the moment is a sharp decline in liquidity.Traders are closing positions en masse before the holidays, which has already led to stagnation in the prices of major coins

According to trading experts, signs of stress in the market are beginning to subside as the price of Bitcoin stabilizes. However, there is a possibility that short-term volatility will increase in the next few days.

Low liquidity can lead to a cascade of trader position liquidations even with small price movements of an asset, experts at QCP Capital believe. Unless there is a decisive breakout in one direction or the other that significantly changes traders' positions and expectations for 2026, cryptocurrencies are likely to remain in a narrow price range.

The market was caught between weak liquidity and the actions of traders, analysts said. QCP Capital predicts continued uncertainty in the market until full trading activity returns at the start of the new year in 2026. Next week will show whether the market will be able to maintain a fragile balance or not, experts concluded.

The current situation reminded analysts of December 2017, when large players also set positions en masse. However, today the structure of the crypto market itself has changed dramatically: spot Bitcoin ETFs have appeared, which create additional correlation with traditional assets.

An analysis of economic factors revealed an interesting detail: Gold's growth comes against the backdrop of stagnation in Bitcoin and could be a signal for a reassessment of the role of cryptocurrencies as a defensive asset. Central banks continue to increase gold reserves while ignoring digital assets.

The market is likely testing the hypothesis of whether Bitcoin is able to maintain its status as a hedge against inflation in conditions of political uncertainty, QCP Capital representatives concluded. Previously, Tether CEO Paolo Ardoino said on the Bitcoin Capital podcast that the main risk factor for Bitcoin in 2026 will be the “artificial intelligence bubble.”