In the latest weekly report from cryptocurrency analyst Lookonchain, covering the period from December 29, 2025, to January 4, 2026, key insights reveal a mixed but optimistic landscape for Bitcoin (BTC) and Ethereum (ETH) markets. Despite a slight dip in stablecoin market capitalization by $251 million, decentralized exchange (DEX) volumes showed improvement in both spot and perpetual trading segments. This resilience highlights growing trader confidence amid institutional accumulation, with five companies collectively adding 5,890.7 BTC valued at approximately $552.5 million. Such moves underscore the ongoing bullish sentiment in crypto trading, where institutional inflows often signal potential price rallies and trading opportunities for retail investors looking to capitalize on momentum plays.

Institutional BTC and ETH Accumulation Drives Market Momentum

Delving deeper into institutional activities, Michael Saylor's Strategy emerged as a prominent player, acquiring an additional 1,283 BTC for $116 million at an average price of $90,391 per BTC last week. This purchase not only bolsters Strategy's holdings but also reflects a strategic bet on BTC's long-term value, potentially pushing resistance levels higher. Traders monitoring on-chain metrics should note this as a bullish indicator, correlating with increased trading volumes on major pairs like BTC/USDT. Similarly, Tom Lee's Bitmine continued its aggressive ETH accumulation, snapping up 32,977 ETH worth $104 million, bringing their total holdings to 4,143,502 ETH valued at $13.06 billion. These actions suggest strong institutional faith in ETH's ecosystem, especially with improving DEX perpetual volumes that could lead to breakout opportunities above key support levels around $3,000 for ETH/USD.

Analyzing DEX Volumes and Stablecoin Trends for Trading Strategies

The improvement in DEX spot and perpetual trading volumes, as reported, indicates a rebound in decentralized finance (DeFi) activity, which is crucial for traders eyeing leverage positions. With stablecoins experiencing a minor $251 million market cap decline, liquidity remains robust enough to support high-volume trades without significant slippage. For BTC traders, this environment favors strategies like scalping around the $90,000 mark, where recent institutional buys provide a psychological support floor. On-chain data from this period shows heightened whale activity, with accumulation phases often preceding volatility spikes—ideal for options trading or futures contracts on platforms tracking BTC perpetuals. ETH enthusiasts might explore pairs like ETH/BTC, given Bitmine's massive holdings that could influence cross-market dynamics and offer arbitrage plays if ETH outperforms BTC in the coming sessions.

From a broader market perspective, the protocol revenue trends mentioned in the report point to sustainable growth in blockchain ecosystems, enhancing the appeal of altcoins tied to DeFi protocols. Traders should watch for correlations between these institutional inflows and overall market indicators, such as the Bitcoin dominance index, which could shift if ETH accumulation persists. Historical patterns suggest that weeks with over 5,000 BTC added by institutions often lead to 5-10% price appreciations within a month, providing actionable insights for swing traders. Incorporating real-time sentiment analysis, if BTC holds above $90,000 amid these developments, it could target resistance at $95,000, while ETH might test $3,200 with favorable volume upticks. This report emphasizes the importance of monitoring whale wallets for early signals, advising diversified portfolios that balance BTC's stability with ETH's growth potential in volatile markets.

Overall, this weekly overview positions cryptocurrency trading as increasingly institution-driven, with opportunities for both short-term gains and long-term holds. Investors are encouraged to use tools like moving averages—such as the 50-day EMA for BTC—to gauge entry points, while keeping an eye on DEX liquidity for efficient executions. As the crypto market evolves, these institutional moves could catalyze broader adoption, influencing stock market correlations through Bitcoin ETFs and AI-integrated blockchain projects that enhance trading algorithms.