Crypto markets extended their pullback on Wednesday, with total capitalization slipping below $3 trillion for the third time this month, testing a level that could open the door to further declines.
The weakness was concentrated in large-cap tokens, especially those with significant ETF exposure, suggesting that institutional repositioning—rather than broad retail selling—is driving the move. Bitcoin (BTC) fell 1.5% to $86,580, partially reversing gains from Tuesday. Ether (ETH) retraced to $2,930 from an overnight high near $2,980, while XRP stalled around $1.90, according to CoinDesk data. These major coins, which attracted strong institutional inflows earlier this year, are now leading losses as sentiment cools.
“Major coins are increasingly influenced by shifting institutional sentiment,” said Alex Kuptsikevich, chief market analyst at FxPro, noting that investors are reassessing risk heading into year-end.
BTC’s decline contrasted with moderate gains in Asian equity markets, including the Hang Seng, Shanghai Composite, Kospi, and IDX, which were buoyed by expectations of fiscal stimulus from Beijing following weak November economic data.
Macro conditions also weighed on crypto. The U.S. dollar index climbed to 98.30 from a 2.5-month low of 97.87 after November jobs data showed 64,000 new positions—above forecasts—while unemployment unexpectedly rose to 4.6%, its highest since 2021. A stronger dollar typically pressures BTC and other dollar-denominated assets, though gold held firm above $4,300 per ounce.
Sentiment and technical outlook
The crypto Fear & Greed Index dropped to 11, signaling extreme fear. Unlike short-lived pullbacks in February and April, the current decline shows signs of a broader correction, with several large-cap assets breaking intermediate support. BTC’s next key support zone lies near $81,000, where November lows align with March consolidation levels. A deeper retracement could expose the $60,000–$70,000 range, historically significant from prior cycles.
Liquidity conditions
Thin liquidity is amplifying volatility. FlowDesk data show declining market depth and muted leverage as traders close positions ahead of year-end, while overall exchange volumes remain historically weak.
On-chain indicators are mixed. CryptoQuant data suggest the recent BTC rally may be exhausted, pointing to a corrective phase, while Glassnode shows ongoing long-term accumulation among corporations and financial firms. Strategy’s recent $1 billion purchase of 10,624 BTC highlights selective accumulation even as short-term momentum weakens.
