Bitcoin Profit-Taking Pushes ETH, SOL, and ADA Lower

Crypto Markets Dip Amid Year-End Caution and Weak Tech Sentiment

Cryptocurrency markets fell on Sunday as broader risk-off sentiment extended into the final full trading week of 2025. Investors remained cautious amid concerns over stretched technology valuations, slowing U.S. equities momentum, and mixed signals from the Federal Reserve.

Bitcoin dropped about 0.5% to trade near $89,600, remaining just above last week’s lows, while ether edged lower to around $3,120. Other major tokens, including XRP, Solana, and Dogecoin, saw declines of up to 2%, according to market data.

The weakness comes after a modest rebound in U.S. equity-index futures following last week’s tech-led selloff, sparked by scrutiny of heavy AI spending and sustainability of earnings. S&P 500 and Nasdaq 100 futures rose roughly 0.2% in Asian morning trading on Monday, but overall risk appetite remains fragile as investors question whether elevated tech valuations can hold into 2026.

Crypto markets have struggled to regain momentum following October’s sharp drawdown, with thin trading volumes amplifying price swings and reinforcing a defensive tone.

“Investors are cautious due to October’s dip, concerns over an overvalued U.S. stock market, and mixed Fed signals,” said Jeff Mei, COO of crypto exchange BTSE. He noted that Bitcoin ETF inflows remain net positive and Fed liquidity support could flow into both stocks and crypto.

Mei added that year-end positioning is likely driving current weakness. “Traders are taking profits now and will reassess new crypto positions at the start of 2026,” he said.

Liquidity constraints may exacerbate downside moves, analysts warn. “This morning’s sell-off continues Friday’s negative bias, with major tokens expected to lead declines,” said Augustine Fan, head of insights at SignalPlus. “With trading volumes down since October 10 and sentiment broadly negative, BTC and ETH are acting as hedges for other tokens as traders adjust exposures.”

Fan cautioned against over-interpreting short-term swings. “Daily or hourly moves can be misleading in these thin conditions, but sentiment points to softer prices into year-end,” he said.

Despite short-term pressure, U.S.-listed bitcoin ETFs and ongoing central bank liquidity could provide a more supportive backdrop once markets reopen in early 2026.