Crypto assets continued to slide through December, tracking a broader retreat across global risk markets as investors reduced exposure ahead of key U.S. data releases and increasingly thin year-end liquidity.
Bitcoin dropped toward $85,800 during Asian hours, extending its weekly decline beyond 4% as selling pressure spread across the market. Ether slipped to around $2,930, while solana, XRP and dogecoin each logged weekly losses of more than 5%, highlighting a broad-based pullback rather than isolated weakness.
The move aligned with losses across traditional markets. Asian equities fell sharply, with the MSCI Asia Pacific Index down 1.3%, while U.S. equity futures edged lower ahead of Tuesday’s November jobs report, which is expected to confirm a cooling labor market. The dollar hovered near two-month lows, while the yen strengthened to about 155 per dollar as traders positioned for a widely anticipated Bank of Japan rate increase later this week.
Total crypto market capitalization edged down to roughly $3.06 trillion, slipping 0.2% over the past 24 hours and more than 2% on the week. Although the market has repeatedly defended the $3 trillion level in recent sessions, analysts say the shift from a rising trend to sideways movement suggests weakening momentum rather than renewed buying interest.
“The transition from an uptrend to consolidation is not encouraging for buyers,” said Alex Kuptsikevich, chief market analyst at FxPro, in an email. “Selling pressure since late November has broken the short-term structure, leaving the market exposed to further downside.”
Investor sentiment has grown more defensive. The crypto fear and greed index has fallen to 16, its lowest level in nearly three weeks, signaling extreme caution. Extended periods in fear territory without a clear catalyst have often coincided with late-stage market weakness.
Bitcoin briefly dipped below $87,500 earlier in the week before recovering toward $90,000, but the broader technical outlook has continued to erode. FxPro analysts now see a move toward the $81,000 region as the baseline scenario, while noting that range-bound trading could emerge if selling pressure eases.
Broader indicators point to a deeper corrective phase. Binance Research estimates total crypto market capitalization has fallen by about 15% over the past 30 days. December’s typically lower liquidity further increases the risk of sharper price swings as traders rebalance positions ahead of year-end.
Prediction markets echo the cautious mood. On Kalshi, most users expect bitcoin to finish the year below $100,000, with the probability of a move above that level standing at just 23%.
