In the latest weekly report from Lookonchain covering December 22 to December 28, 2025, the cryptocurrency market showed mixed signals with notable institutional and whale activities driving potential trading opportunities in BTC and ETH. The overview highlighted a $977 million drop in stablecoin market capitalization, signaling possible reduced liquidity entering the market, while decentralized exchange (DEX) activity weakened, reflecting lower trading volumes. Despite these headwinds, institutions accumulated 1,551 BTC worth approximately $135.93 million, and large buyers scooped up over 136,000 ETH, including significant purchases by entities like Bitmine and Trend Research. Additionally, prominent trader Arthur Hayes rotated out of ETH into tokens such as LDO, PENDLE, and ENA, which could influence altcoin momentum in the coming sessions.

Institutional BTC Accumulation and Trading Implications

Five companies bolstered their holdings by 1,550.84 BTC last week, equating to $135.93 million based on prices at the time, according to Lookonchain. This institutional inflow is a bullish indicator for BTC traders, often correlating with price support levels during market dips. For instance, if we consider historical patterns, such accumulations have preceded rallies, with BTC frequently testing resistance around the $90,000 to $100,000 range in similar scenarios. Traders should monitor key support at $85,000, where on-chain metrics show increased buying interest. Without real-time data, it's essential to note that trading volumes on major pairs like BTC/USDT could surge if this trend continues, potentially offering entry points for long positions. Institutional flows like these also impact perpetual futures, where funding rates might turn positive, encouraging leveraged trades. For cross-market correlations, this BTC strength could spill over to stock markets, particularly tech-heavy indices like the Nasdaq, where crypto sentiment often drives AI and blockchain-related stocks higher.

ETH Whale Buys Signal Bullish Momentum

ETH saw aggressive accumulation, with Bitmine, associated with Tom Lee of Fundstrat, purchasing an additional 44,463 ETH valued at $130 million, bringing their total holdings to 4,110,525 ETH or about $12.02 billion. Similarly, Trend Research acquired 92,415 ETH worth $274 million over the week, as per on-chain data from Arkham Intelligence. These whale activities suggest strong confidence in ETH's long-term value, especially amid Ethereum's upgrades and DeFi ecosystem growth. From a trading perspective, this could push ETH towards resistance at $3,000 to $3,500, with support holding firm around $2,800 based on recent moving averages. On-chain metrics, including increased wallet addresses holding over 1,000 ETH, reinforce this narrative, potentially leading to higher spot volumes on exchanges. Traders might look at ETH/BTC pairs for relative strength plays, where a breakout above 0.04 could indicate ETH outperformance. Moreover, Arthur Hayes' shift from ETH to LDO, PENDLE, and ENA highlights rotation strategies; LDO, tied to Lido staking, saw potential volume spikes, while PENDLE and ENA could benefit from liquid staking derivatives trends, offering altcoin trading opportunities with volatility around 5-10% daily moves.

The stablecoin market cap decline of $977 million points to cautious sentiment, possibly due to regulatory pressures or profit-taking, which traders should factor into risk management. DEX trading volumes and protocol revenues weakened, indicating reduced retail participation, but this contrasts with robust institutional buying, creating a divergence that savvy traders can exploit. For example, monitoring DEX pairs like ETH/USDC for liquidity shifts could reveal arbitrage chances. In broader market implications, these developments tie into AI tokens, as Ethereum's role in decentralized AI applications grows, potentially boosting sentiment for projects like those involving machine learning integrations. Overall, the report underscores a market ripe for selective trading, with emphasis on monitoring on-chain flows and volume indicators to capitalize on institutional momentum while navigating liquidity risks.

To optimize trading strategies, consider technical indicators such as RSI levels for BTC and ETH, which might hover around 60-70 in bullish phases, signaling overbought conditions for short-term pullbacks. Institutional accumulations often correlate with increased options open interest, providing hedging opportunities. For those eyeing cross-asset plays, BTC's strength could influence crypto-linked stocks, offering diversified portfolios. As always, traders should use stop-loss orders around key supports to mitigate downside risks amid volatile conditions.