Crypto markets continued to weaken in December, tracking a broader pullback across global risk assets as investors trimmed exposure ahead of key U.S. economic data and year-end liquidity thinned.
Bitcoin slid toward $85,800 in Asian hours, extending weekly losses to more than 4% as selling pressure spread across major tokens. Ether fell to around $2,930, while solana, XRP and dogecoin each posted weekly declines of over 5%, highlighting a market-wide retreat rather than token-specific stress.
The move mirrored softness across global 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 point to a cooling labor market. The dollar hovered near two-month lows, and the yen strengthened to about 155 per dollar as traders positioned for a widely anticipated Bank of Japan rate hike later this week.
Total crypto market capitalization dipped to roughly $3.06 trillion, down 0.2% over the past 24 hours and more than 2% on the week. While the market has repeatedly defended the $3 trillion level in recent sessions, analysts say the shift from an upward trend to sideways consolidation signals fading momentum rather than renewed strength.
“The move from an uptrend into horizontal support is not a constructive signal 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 in a consolidation phase with downside risks still elevated.”
Sentiment has turned increasingly cautious. The crypto fear and greed index has dropped to 16, its lowest level in nearly three weeks, indicating extreme risk aversion. The prolonged stay in fear territory without a clear catalyst echoes late-cycle weakness seen at the end of previous market cycles.
Bitcoin briefly slipped below $87,500 earlier in the week before rebounding toward $90,000, but the broader technical backdrop has continued to deteriorate. FxPro analysts now view a move toward the $81,000 area as the baseline scenario, although a period of range-bound trading remains possible 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 heightens the risk of sharper price swings as traders adjust positions ahead of year-end.
Prediction markets reinforce the cautious outlook. On Kalshi, a majority of users expect bitcoin to end the year below $100,000, with the probability of a move above that level sitting at just 23%.
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