Bitcoin Stuck Below $90k While China Moves On Digital Yuan
Abu Dhabi, United Arab Emirates, Tuesday 29 December 2025 โ Crypto markets remained subdued over the festive period, with total market capitalisation hovering around the $3 trillion mark, according to analysis from eToro.
Bitcoin, which currently accounts for nearly two-thirds of the total crypto market capitalisation, continues to trade within a narrow range between the $85,000 support level and $90,000 resistance, as markets await a catalyst to push prices higher.
Simon Peters, Crypto Analyst at eToro
โCrypto markets have been fairly muted over the festive season, with bitcoin remaining range-bound and seemingly in need of a catalyst to drive prices higher,โ said Simon Peters, Crypto Market Analyst at eToro. โThere isn’t much in the way of major economic data this week to provide that spark, although the release of minutes from the latest Federal Reserve meeting on Tuesday may offer greater insight into policymakers’ expectations for future interest rate cuts.โ
Despite bitcoin reaching a new all-time high earlier in the year, the broader crypto market has faced challenges.
โIt’s been a difficult year for cryptoassets,โ Peters added. โWhile bitcoin did reach a new record high, it has since reversed those gains and is currently trading below where it started the year.โ
โHeading into 2026, there are reasons for renewed optimism. With global financial conditions expected to ease, continued regulatory progress, potential spot ETF approvals and inflows, and a growing number of publicly listed companies establishing digital asset treasuries, the outlook for crypto could improve. We’ll be watching closely.โ
Biggest Movers
Zcash ($ZEC) has been one of the strongest performers over the past seven days, rising 17% as it continues to rebound from lows recorded on 2 December.
Currently trading at around $520, Zcash has emerged as one of the best-performing cryptoassets of the year, gaining approximately 820%, amid renewed investor interest in privacy-focused cryptocurrencies.
PBoC Announces New Framework for Digital Yuan CBDC
The People’s Bank of China (PBoC) announced on Monday that it will introduce a new framework for its digital yuan central bank digital currency (CBDC), the e-CNY, with the measures set to take effect on 1 January 2026.
The framework aims to standardise how the PBoC tracks digital yuan circulation, usage and system performance. Notably, it will allow commercial banks to pay interest on digital yuan balances, a move that could accelerate adoption and further integrate the e-CNY into China’s existing banking system.
The plan also outlines the establishment of an international operations centre in Shanghai to promote so-called โmultilateral central bank digital currency bridges,โ strengthening cross-border CBDC cooperation.
China’s central bank began researching digital currencies in 2014, with the e-CNY officially launching in 2022 following years of pilot programmes.
As of the end of November 2025, the digital yuan had processed 3.48 billion transactions, with a cumulative transaction value of RMB 16.7 trillion (approximately $2.37 trillion). According to the PBoC, 230 million personal wallets and 18.84 million corporate wallets have been opened via the digital yuan app.
Notes
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