Coindesk reports that a 10% drop in Broadcom and broader concerns over AI-related overvaluation dragged the Nasdaq and crypto-exposed equities lower, spilling into BTC, which recently fell from record highs near $126K to about $90K. Fed official Goolsbee signaling openness to more cuts than the median for 2026 underscores macro uncertainty, adding to volatility rather than triggering a clean ‘risk-on’ bid.
Conflicting institutional signals on Bitcoin’s longer-term path
JPMorgan and others argue the Bitcoin bull cycle remains intact and maintain very high long-term targets (up to $240K) even as they acknowledge November’s drawdown and election-driven overvaluation. At the same time, Standard Chartered has trimmed its end-2025 forecast to ~$100K and sees treasury-company buying largely exhausted, shifting the focus to ETF inflows as the next key driver.
MicroStrategy-style treasury concentration draws regulatory index risk
Forbes highlights Michael Saylor’s warning that proposed MSCI rules could exclude companies with more than 50% of assets in crypto from major indices, potentially forcing up to $8.8B of outflows from his firm and similar ‘Bitcoin treasury’ plays. While Bitcoin itself is only modestly lower today, this additional overhang on crypto-equity proxies adds to the cautious tone around leverage and concentrated holdings.
Altcoins underperform as liquidity rotates defensively
Major alts like Solana and Cardano are down 3–5% over 24 hours, underperforming Bitcoin and reflecting a typical stress pattern where liquidity moves first into BTC and then partially back to fiat or stablecoins. XRP is comparatively resilient around $2.00–$2.03, with on-chain and sentiment data showing bulls and bears locked in a stalemate near this psychological level.
Regulatory milestone: major crypto firms inch closer to bank status
Five large crypto companies, including Ripple, Circle and BitGo, secured conditional OCC approval to convert into national trust banks, tightening links between crypto and traditional finance. The move is supportive for the medium-term adoption narrative, particularly for XRP and stablecoins, even as near-term prices remain choppy.
XRP holds the $2 handle amid ETF and banking-license narrative
XRP trades near $2.00–2.02, slightly higher intraday but down about 1% over 24 hours, as it digests heavy recent volatility and profit-taking after its spot ETF debut. Bulls point to strong ETF flows and Ripple’s U.S. trust bank push as structural supports, while bears note ongoing selling by long-term holders and sensitivity to Bitcoin’s swings.
Solana and high-beta alts bounce but stay under pressure
Solana is up around 0.4% on the day near $133 after a 3%–4% slide Friday, mirroring a tentative rebound across high-beta altcoins following the Fed decision. Flows show rotation from mega-cap BTC/ETH ETFs toward newer SOL and XRP products, but not yet at a scale to fully offset macro-driven risk-off moves.
Altcoins follow lower, with Ethereum and Solana underperforming Bitcoin
Solana is down about 3% and XRP roughly 1–2%, mirroring broader weakness in majors as derivatives liquidations and technical selling pressure the complex. News flow around AI and tech equity volatility, alongside thinner year-end liquidity, is amplifying moves in high‑beta coins like SOL and ADA.
Macro backdrop: dovish Fed and softer dollar support long-term crypto thesis
TradingEconomics and Yahoo Finance report gold near record highs and the dollar index hovering near multi-week lows after the Fed’s third 25 bp cut and new T-bill purchases. While today’s tape is risk-off for crypto, the combination of easier Fed policy and added dollar liquidity is seen as supportive for longer-term Bitcoin upside in on-chain valuation work from Bitcoin Magazine.
Crypto retreats as AI-driven tech selloff weighs on risk assets
Bitcoin trades around $90,246, down roughly 2.5%, and Ethereum falls nearly 4.8% as concerns over an AI spending bubble and weak tech sentiment—highlighted by sharp drops in Oracle and Broadcom—spill into digital assets (Reuters, Yahoo Finance, CoinDesk). Broader risk-off flows and elevated volatility in crypto proxies such as Strategy Inc. (MSTR) are amplifying downside pressure.