Bitcoin traded at $86,284, down 1.79%, as the token heads toward its fourth consecutive annual loss despite institutional adoption and Trump administration support. The rapid decline from October's record high above $126,000 has left crypto markets struggling to find footing.
Eth and Altcoins Extend Losses on Muted Risk Appetite
Ethereum dropped 4.30% to $2,835, while XRP fell 3.08% to $1.87 and Solana declined 4.41% to $123.41. Broader crypto market capitalization tested the $3 trillion floor for the third time this month as traders remained cautious.
ETF Outflows and Fed Uncertainty Pressure Crypto
Sustained outflows from U.S. spot Bitcoin ETFs removed crucial institutional support that had underpinned earlier rallies. Mixed U.S. labor data and uncertainty over the Federal Reserve's rate path kept investors cautious, with markets pricing only 24% odds of a January rate cut.
XRP Loses Key $2.00 Support Level
XRP relinquished its $2.00 support level, falling to $1.88, as analysts identified a potential 48% crash pattern. Ripple co-founder Chris Larsen's reported $200 million sell-off rattled bulls and increased selling pressure on the token.
Strategy (MSTR) Stock Slides as Bitcoin Premium Compresses
Strategy Inc. shares fell to the lowest since October 2024, declining from above $400 earlier this year to below $190. The company's enterprise value relative to Bitcoin holdings compressed to below 1.2x from 1.4x, raising concerns about shareholder dilution from ongoing Bitcoin purchases.
Crypto Markets Experience Major Whipsaw on Wednesday
Bitcoin briefly surged above $90,000 early in the U.S. session before quickly reversing course, tumbling back below $88,000. The rally evaporated as continued weakness in AI-related tech stocks sent the Nasdaq sharply lower, dragging crypto markets down with it.
Bitcoin Rebounds Above $89,000 After Testing Extreme Fear Levels
BTC gained 2.37% to trade at $89,932, recovering from a sharp weekend selloff that pushed the Fear and Greed Index to 11 out of 100. The rebound follows thin liquidity conditions that amplified downside moves, with Bitcoin testing the critical $85,569 support level amid extreme bearish sentiment.
Spot Bitcoin ETFs Continue Bleeding as Institutional Demand Wanes
Sustained outflows from US-listed Bitcoin ETFs have removed a key support pillar for the market, with data showing net redemptions in recent sessions. The outflows have exacerbated pressure on BTC, raising concerns about waning institutional appetite after ETFs had underpinned earlier gains.
Eth Gains 1.59% But Remains Trapped in Bearish Technical Setup
ETH rose to $3,009 but continues to face resistance at the 50-day EMA near $3,249. Technical indicators show bearish momentum building, with RSI at 41 and MACD flashing a bearish crossover, suggesting risk of further decline toward $2,749 support.
XRP Advances 2.09% Despite Breaking Below Key $1.96 Support
XRP traded at $1.97 after closing below critical daily support at $1.96 earlier this week. Bears are targeting the $1.77 level, with RSI at 37 and a bearish MACD crossover indicating negative momentum despite Tuesday's modest recovery.
SOL Rises 1.71% as Crypto Market Cap Tests $3 Trillion Floor
SOL climbed to $131.32 amid cautious trading across altcoins. The broader crypto market capitalization fell below $3 trillion for the third time in a month, reflecting subdued risk appetite and lack of fresh catalysts to drive momentum.
Fed Uncertainty and Mixed Jobs Data Keep Crypto Markets Range-Bound
Delayed November payrolls showed 64,000 jobs added and unemployment rising to 4.6%, complicating the Fed's rate outlook. Markets remain uncertain about the pace of future rate cuts, weighing on risk-sensitive assets like cryptocurrencies ahead of Thursday's inflation data.
Strategy Stock Under Pressure as Bitcoin Premium Compresses to 1.2x
MicroStrategy's enterprise value relative to Bitcoin holdings fell to below 1.2x from above 1.4x earlier, as S&P noted the stock's decline from over $400 to below $190. Concerns over dilution from ongoing share issuance to fund Bitcoin purchases continue to weigh on sentiment.
Bitcoin Tests Critical 100-Week Moving Average as Downtrend Stalls
BTC is trading near the 100-week moving average, a key technical support level that has historically acted as a safety net. A sustained break below could signal deeper correction, though some analysts view extreme fear readings as potential contrarian buying opportunities.