Bitcoin Approaches $90,000 – Political Uncertainty and Token Unlock Shape Market Activity

Slight Recovery in Crypto Market

The crypto market is showing a slightly optimistic mood on Saturday. Bitcoin is trading at around $88,300, up 0.4 percent compared to the previous day ^[1]. Ethereum is rising 0.8 percent, just below the psychologically significant $3,000 mark, while XRP is trading stably at approximately $1.91 with a price gain of three percent ^[1].

Total market capitalization is increasing by 0.9 percent ^[1]. While the Fear-and-Greed Index has risen slightly, it remains in the extreme fear zone at 20 points ^[1].

Lummis Announces Retirement

Despite positive price developments, news from U.S. politics caused surprise in the crypto sector. U.S. Senator Cynthia Lummis, one of the most prominent supporters of crypto-related legislative initiatives in Congress, announced her retirement for 2027 ^[1].

Lummis was a central advocate of the Market Structure Bill and led efforts on the GENIUS Act for stablecoin regulation ^[1]. Her announced departure is likely to delay the passage of pending legislative proposals and removes one of the sector's most influential voices in the regulatory process ^[1].

LayerZero Token Unlock Could Trigger Volatility

In the short term, a major token unlock could shape market activity. LayerZero (ZRO) is releasing approximately 10.3 percent of its circulating supply today ^[1]. Unlocks of this magnitude typically lead to increased volatility, as early investors and team allocations are frequently realized in the short term ^[1].

Analysts expect possible pullbacks in the range of five to fifteen percent ^[1]. At the same time, the project is considered technologically established due to its cross-chain infrastructure, which has repeatedly led to demand following sharp declines in the past ^[1]. At a price of $1.36, LayerZero is up 2.6 percent on the day ^[1].

Controversial Forecasts for 2026

A circulating report attributed to Fundstrat Global Advisors outlines a bearish outlook for cryptocurrencies ^[2]. According to screenshots shared on X, the document, which appears to represent Fundstrat's internal crypto strategy guidance for 2026, warns of a "significant decline" in the first half of 2026 ^[2].

The report sets downside targets suggesting Bitcoin could fall to $60,000 to $65,000, Ether could drop to $1,800 to $2,000, and Solana could retreat to $50 to $75 before potential buying opportunities emerge later in the year ^[2].

BitMine Bets on Ethereum

Bucking the trend, Tom Lee's company BitMine has aggressively expanded its Ethereum holdings despite a weakening market environment ^[2]. In a disclosure dated December 8, the company reported that as of December 7, it held nearly 3.9 million ETH, having added more than 138,000 ETH in a single week ^[2]. The company claims its holdings now represent over 3.2 percent of the total Ether supply ^[2].