Crypto Market Falls Below $3 Trillion as Bitcoin and Major Tokens Retreat
Bitcoin and other leading cryptocurrencies pulled back on Wednesday, sending the total crypto market capitalization down 1.4% to $2.97 trillion, slipping below the $3 trillion mark after another failed rebound attempt.
Bitcoin traded near $86,900, unable to hold above $90,000 for the third straight day. Ether declined 1.5% to around $2,927, while XRP, Solana, and Dogecoin fell more sharply—Solana down nearly 3% and XRP off almost 2%.
The decline came even as global equities hit record highs, signaling a shift toward safer assets. MSCI’s All Country World Index rose for a fifth consecutive session, lifting its year-to-date gain to 21%, while Asian markets added 0.2%, led by technology shares, following an all-time high close for the S&P 500.
Trading volumes were light ahead of the Christmas holiday, with European futures pointing to a muted open.
Alex Kuptsikevich, chief market analyst at FxPro, said repeated crypto rebounds are failing, indicating growing seller dominance. “The market was unable to repeat the robust rebound from the local bottom, reflecting increased selling pressure,” he said, noting larger investors are acting cautiously, as if preparing for a bear phase.
Kuptsikevich also cited broader risk factors: Bitcoin fell after briefly topping $90,000 despite gains in gold and other precious metals and a weaker dollar. “Investors are reassessing risk appetite, and this risk-off sentiment may spread further,” he said, forecasting further crypto declines and potential spillover into stocks and emerging-market currencies.
Supporting this cautious mood, CoinShares reported $952 million in outflows from global crypto investment products last week, ending a three-week streak of inflows. Bitcoin products lost $460 million, Ethereum shed $555 million, while XRP and Solana recorded inflows of $63 million and $49 million, respectively.
