Crypto prices today dipped due to a pullback in U.S. equities that pushed investors away from risk assets.
The total crypto market value fell about 1% on the day to $3.01 trillion. Bitcoin was trading near $86,816 at press time, down 0.5% over the past 24 hours. Ethereum posted a steeper drop, falling roughly 3% to $2,838.
Losses were heavier across major altcoins. XRP slipped 3.4% to $1.86, while Dogecoin fell 4% to $0.1255. Hyperliquid saw one of the sharpest moves among larger tokens, down about 8% to $24. Market sentiment remained fragile. The Crypto Fear & Greed Index rose one point to 17, but stayed firmly in “extreme fear” territory.
Derivatives markets pointed to continued pressure. CoinGlass data showed 24-hour liquidations jumping 126% to $536 million. Open interest across the crypto market declined 1.22% to $124 billion, suggesting traders were reducing leverage.
The average crypto market relative strength index hovered around 34, close to neutral but leaning weak.
The latest downturn came alongside a Dec. 17 sell-off in U.S. stocks, led by tech names. The Nasdaq tumbled 1.9% after Nvidia, Broadcom, Oracle, and Alphabet all posted sharp losses on valuation concerns, rising costs, and slower-than-expected AI profitability. Dropping about 1.2%, the S&P 500 also hit a three-week low.
Crypto has increasingly tracked moves in tech stocks this year, and the latest equity pullback spilled into digital assets. As stocks fell, traders rotated out of higher-risk positions, triggering further downside in leveraged crypto markets.
Bitcoin continues to trade in a wide consolidation range after failing to hold recent highs. Many traders are watching the $85,000-$86,000 zone as near-term support, with resistance seen just below $90,000. A break in either direction could set the tone for year-end, when liquidity typically thins.
Selling pressure appears to have picked up from longer-term holders. Wu Blockchain, citing K33 Research, reported that roughly $300 billion worth of previously dormant Bitcoin has entered the market this year. Over the past month, long-term holder selling has reached its highest level in five years.
Earlier in the cycle, inflows into spot Bitcoin exchange-traded funds helped absorb much of that supply. More recently, ETF demand has cooled, while derivatives activity and retail participation have also eased, leaving the market more exposed to spot selling.
Julio Moreno, head analyst at CryptoQuant, noted that Bitcoin’s current cycle is past its peak. He said the focus should be on demand waves rather than the halving alone. According to Moreno, BTC is now descending toward a low point in the cycle, making the recent volatility part of a broader corrective phase rather than an isolated shock.
Despite the short-term weakness, some analysts maintain a constructive view on Bitcoin over a longer horizon. Bitwise chief investment officer said he expects Bitcoin’s volatility to fall below that of Nvidia next year as institutional participation grows. He also forecasts a new all-time high for BTC, even as near-term price action remains uneven.
For now, markets are watching for the U.S. CPI data release and the Bank of Japan’s policy decision this week, which are likely to influence risk sentiment in the short-term.
