Crypto markets remained under pressure in December, moving in step with a broader pullback across global risk assets as investors grew more cautious ahead of key U.S. economic data and year-end liquidity constraints.
Bitcoin slid toward $85,800 in Asian trading, extending weekly losses to more than 4% as selling spread across major cryptocurrencies. Ether fell to around $2,930, while solana, XRP and dogecoin each recorded weekly declines exceeding 5%, pointing to a market-wide retreat rather than isolated token weakness.
The decline mirrored softness across traditional markets. Asian equities dropped 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, and the yen strengthened to roughly 155 per dollar as investors positioned for a widely anticipated Bank of Japan rate hike later this week.
Total crypto market capitalization slipped to about $3.06 trillion, down 0.2% over the past 24 hours and more than 2% on the week. While the market has repeatedly held above the $3 trillion level in recent sessions, analysts note that the transition from an upward trend to sideways trading reflects fading momentum rather than renewed buying interest.
“The shift from an uptrend into consolidation is not a constructive signal for buyers,” said Alex Kuptsikevich, chief market analyst at FxPro, in an email. “Selling pressure since late November has disrupted the short-term structure, leaving the market vulnerable to further downside.”
Sentiment indicators point to growing unease. The crypto fear and greed index has fallen to 16, its lowest level in nearly three weeks, signaling extreme caution. Extended periods in fear territory without a clear catalyst have historically coincided with late-cycle weakness.
Bitcoin briefly dipped below $87,500 earlier in the week before recovering toward $90,000, though the broader technical picture has continued to deteriorate. FxPro analysts now see a move toward the $81,000 area as the baseline scenario, while noting that a phase of range-bound consolidation remains possible if selling pressure eases.
Broader measures suggest the market may be entering a deeper corrective phase. Binance Research estimates total crypto market capitalization has declined by roughly 15% over the past 30 days. December’s typically thinner 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 at just 23%.
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