Crypto Markets Slip as Year-End Profit-Taking Weighs on Investors
Cryptocurrency markets eased on Sunday as caution among investors persisted heading into the last full trading week of 2025. Concerns over elevated technology valuations, fading momentum in U.S. equities, and mixed signals from the Federal Reserve weighed on risk appetite.
Bitcoin fell about 0.5% to trade near $89,600, hovering just above last week’s lows, while ether edged lower to roughly $3,120. Major altcoins, including XRP, Solana, and Dogecoin, saw declines of up to 2%, according to market data.
The drop followed a modest rebound in U.S. equity-index futures after last week’s tech-driven selloff, which was fueled by renewed scrutiny of heavy artificial intelligence spending and questions over earnings sustainability. S&P 500 and Nasdaq 100 futures rose around 0.2% in Asian trading Monday, but investors remain cautious as high technology valuations are reassessed ahead of 2026.
Crypto markets continue to struggle to regain momentum after October’s sharp drawdown. Thin trading volumes in recent sessions have amplified price swings, reinforcing a defensive market tone.
“Investors remain hesitant due to October’s decline, concerns over overvalued U.S. stocks, and mixed signals from the Fed,” said Jeff Mei, COO of crypto exchange BTSE. He noted that Bitcoin ETF inflows remain net positive and central bank liquidity could eventually support both crypto and equities.
Year-end positioning is also contributing to current weakness. “Traders are likely taking profits now and will re-evaluate new crypto positions at the start of 2026,” Mei said.
Analysts warned that low liquidity could magnify downside moves. “Today’s sell-off continues Friday’s negative bias, with major tokens expected to lead declines,” said Augustine Fan, head of insights at SignalPlus. “BTC and ETH are serving as hedges for other tokens as sentiment remains broadly negative and trading volumes remain thin.”
Fan added that short-term swings should be interpreted with caution. “Hourly or daily moves can be misleading in these conditions, but the overall market sentiment points to softer prices through year-end,” he said.
Despite near-term pressure, U.S.-listed bitcoin ETFs and ongoing central bank support could create a more constructive backdrop once markets reopen fully in early 2026.
