Crypto Markets Decline Amid Year-End Profit Taking and Mixed Fed Signals
Crypto markets declined as investors remained cautious over technology valuations and mixed signals from the Federal Reserve, with year-end positioning weighing on sentiment.
Bitcoin fell about 0.5% to around $89,600 and Ether edged lower to about $3,120; XRP, Solana (SOL), and Dogecoin were among the larger losers, down up to about 2%.
Trading volumes have thinned, amplifying price moves and reinforcing a defensive tone.
U.S. stock index futures rose modestly, with the S&P 500 and Nasdaq 100 up around 0.2%, but overall risk appetite remains fragile.
The pullback reflects concerns over tech valuations, fading momentum in U.S. equities, and mixed Fed signals entering the final trading week of 2025.
October’s sharp drawdown and the 10/10 liquidity event have contributed to thin liquidity, with Bitcoin and Ether acting as hedges for other tokens amid selling pressure.
Meanwhile, Bitcoin ETF inflows are net positive, and ongoing central-bank liquidity could support crypto and stocks as markets reopen in early 2026.
Analysts caution against over-interpreting short-term moves in thin trading and expect softer prices into year-end as sentiment remains negative.
