Bitcoin News Today: Buddy Shifts Longs to BTC as ZEC Consolidates Amid Market Volatility

Buddy, a prominent crypto trading entity, closed a long position in Zcash (ZEC) to lock in gains and re-entered the market by taking a long position in Bitcoin (BTC) on December 21, 2025. The move came amid a broader market correction and increased volatility across major crypto assets. ZEC, which had surged earlier in the year due to growing interest in privacy coins, showed signs of consolidation, prompting strategic profit-taking. Meanwhile, BTC remained a preferred choice for position re-entry, reflecting its status as the dominant digital asset amid macroeconomic uncertainties.

Market data shows that BTC had fallen slightly from a peak of $93,000 to around $86,000 in the past week, creating a potential buying opportunity for traders seeking exposure to the broader crypto market. The decision to shift from ZEC to BTC aligns with Buddy's strategy of capitalizing on short-term market cycles and leveraging Bitcoin's resilience during times of uncertainty. The move also reflects a growing institutional preference for BTC as a hedge against macroeconomic volatility and regulatory developments in the crypto space.

Meanwhile, the broader crypto market faced renewed institutional outflows after a brief respite in mid-December, as reported on Friday, December 12. Bitcoin ETPs saw a net outflow of $154.2 million, with Ether ETPs also recording a similar trend. This highlights the fragile sentiment among institutional investors and their cautious approach amid a lack of sustained momentum in prices according to market data. However, XRP spot ETFs stood out as a bright spot, with $20.17 million in inflows driven by Franklin and Bitwise ETFs. This suggests a divergence in investor appetite, with some capital favoring narratives tied to regulatory clarity and use cases outside of speculative trading according to recent analysis.

Strategic Positioning in a Volatile Market

Buddy's shift from ZEC to BTC reflects a broader trend among sophisticated traders who monitor both macroeconomic indicators and on-chain activity. ZEC had seen a sharp rise in 2025, fueled by the growing popularity of privacy-focused assets. However, the market had started to consolidate, and the automatic phase increase in Blazpay's presale had drawn attention to other altcoin narratives.

ZEC's volatility made it a high-risk, high-reward asset for traders looking to profit from short-term swings, but with the phase 5 completion of Blazpay pushing its presale past $2.04 million, some capital shifted to more stable or high-utility projects according to Blazpay's update.

BTC, by contrast, has remained a preferred long-term holding. The recent $1 billion weekly accumulation by Strategy, a Bitcoin treasury firm, highlighted the continued institutional interest in BTC as a store of value. Strategy's latest purchase of 10,645 BTC for $980.3 million brought its total BTC holdings to over 671,000 BTC, valued at more than $50 billion. The firm's aggressive accumulation, funded through stock and perpetual preferred stock offerings, underscores the market's view of Bitcoin as a digital gold standard according to market reports.

Risks to the Outlook

Despite the apparent strength of BTC, the market remains fragile. The recent price correction, with Ethereum falling to $2,954.27-well below its predicted target of $3,218.80 for December 24-indicates bearish sentiment. The Fear & Greed index is currently at 16, reflecting extreme fear among investors according to CoinCodex. For traders like Buddy, this volatility presents both opportunities and risks. While Bitcoin's structural advantages, such as its first-mover status and growing ETF presence, offer a buffer against extreme swings, its price is still sensitive to broader macroeconomic developments.

Another risk factor is the regulatory uncertainty surrounding digital assets. Strategy, for instance, has taken a firm stance against potential exclusion from MSCI indices, arguing that such a move could undermine U.S. pro-crypto policy and harm national security. A potential exclusion could trigger up to $8.8 billion in outflows, according to JPMorgan analysts, further pressuring Bitcoin's price according to market analysis. This regulatory risk, combined with the Federal Reserve's cautious approach to rate cuts, means that even a bullish outlook for BTC must be tempered with caution.

What This Means for Investors

For investors navigating the current market environment, the interplay between Bitcoin's institutional demand and altcoin volatility is crucial. Blazpay's AI-powered presale and referral program, for example, has demonstrated strong utility and audited contracts, making it an attractive option for those seeking exposure to AI-driven crypto projects. A $2,500 investment during Phase 5 of Blazpay's presale at $0.0135 per BLAZ token could secure a mid-tier entry before the next price increase according to Blazpay's update. However, such opportunities must be balanced against the overall risk profile of the market, particularly given the fragility of investor sentiment and the regulatory environment.

At the same time, the performance of major crypto assets like Solana (SOL) and Ethereum (ETH) highlights the divergence between on-chain usage and market price. Solana led all chains in key metrics like total transactions and monthly active users in 2025, yet its price underperformed ETH by a significant margin. This suggests that while network usage is a positive indicator, it may not always translate to immediate market gains according to analysis. Investors should therefore consider a mix of on-chain data and macroeconomic factors when making trading decisions.