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As we enter the final weeks of 2025, markets are showing a markedly different tone than just a week ago. Bitcoin and leading altcoins are attempting to stabilize after recent volatility, but liquidity-sensitive assets remain highly reactive to macro shifts. How the Fed signals the path of policy and how markets respond to year-end flows will likely dictate whether BTC and high-cap altcoins can extend gains or face renewed pressure.

Here’s what we’ll cover today:

Let’s dive in 👇

Dear readers, Please note that Sandman Research will take a short break from publishing during the week of December 15–19, 2025. No new reports will be released during this period.

We will resume our regular schedule on Monday, December 22, 2025, with the usual in-depth market coverage, analysis, and insights you rely on.

Thank you for your understanding, and we look forward to continuing to support your crypto and market research needs.

Equities continued their impressive run last week, with global stocks trading near the record highs set in October. The MSCI All-Country World Index has rebounded strongly since mid-November, reclaiming the 1,010 level and signaling renewed confidence across international markets. This strength comes despite lingering concerns around monetary policy and geopolitics, suggesting investors are increasingly pricing in a more supportive economic outlook heading into the new year.

The bond market, however, painted a notably different picture. U.S. 10-year Treasury yields posted their largest weekly increase since April, climbing more than 10 basis points. Rising yields typically act as a headwind for equities, especially high-growth sectors, making this move an important development to monitor as we progress through December.

Valuations in Big Tech, meanwhile, appear relatively reasonable by historical standards. The Bloomberg Magnificent Seven Index is trading around 30x earnings, only slightly above its 10-year average. This contrasts sharply with the stretched valuations seen at the pandemic-era peak in late 2021, when multiples neared 40x. Despite this year’s strong rally, the current valuation backdrop suggests there may still be room for further upside if earnings growth continues to hold firm.

Institutional sentiment heading into 2026 remains distinctly bullish, adding another layer of support for risk assets. Bloomberg’s latest survey of investment managers across the U.S., Europe, and Asia found that 30 of 41 respondents described themselves as “risk-on” for the coming year. Only three were defensive, while four held mixed views. This broad optimism signals that, despite elevated yields and policy uncertainty, institutional investors still see meaningful opportunity in equities as economic growth proves resilient and corporate earnings remain stable.

The combination of reasonable mega-cap valuations and strong institutional risk appetite provides a constructive backdrop as we close out 2025. With a rate cut expected at this week’s FOMC meeting, financial conditions are anticipated to ease further rather than tighten, offering additional support for risk assets heading into 2026. Still, investors should remain attentive to how yields react post-decision, as any unexpected shift in tone could influence valuations and broader market sentiment. We cover this in more detail later in the report.