Crypto prices extended their December decline in tandem with broader risk assets, as investors reduced exposure ahead of key U.S. economic releases and year-end liquidity continued to thin.
Bitcoin fell toward $85,800 during Asian trading, pushing weekly losses beyond 4% as selling pressure spread across the market. Ether slipped to around $2,930, while solana, XRP and dogecoin each recorded weekly declines of more than 5%, underscoring a broad pullback rather than coin-specific weakness.
The retreat reflected wider market softness. Asian equities slid 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 show further cooling in the 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 hike later this week.
Total crypto market capitalization slipped to roughly $3.06 trillion, down 0.2% over the past 24 hours and more than 2% on the week. Although the market has repeatedly held the $3 trillion level in recent sessions, analysts say the shift from a rising trend to sideways support points to waning momentum rather than renewed buying interest.
“The move from an uptrend to horizontal consolidation is not a positive signal for bulls,” 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 present.”
Market sentiment has deteriorated further. The crypto fear and greed index has fallen to 16, its lowest reading in nearly three weeks, signaling extreme caution. A prolonged period in fear territory without a clear catalyst mirrors late-cycle weakness seen at the tail end of previous market cycles.
Bitcoin briefly dipped below $87,500 earlier in the week before rebounding toward $90,000, but the broader technical outlook has continued to weaken. FxPro analysts now see a move toward the $81,000 region as the baseline scenario, though a period of range-bound trading remains possible if selling pressure moderates.
Broader indicators suggest the market may be entering a deeper corrective phase. Binance Research estimates total crypto market capitalization has declined by around 15% over the past 30 days. December’s typically lower liquidity increases the risk of sharper price swings as traders rebalance positions ahead of year-end.
Prediction markets echo the cautious tone. 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%.
