Why Is Crypto Down Today? – December 23, 2025

Summary:
The cryptocurrency market experienced a downturn today, with a 2.4% drop bringing the total market capitalization down to $3.06 trillion. Despite this, trading activities remain robust, with a 24-hour volume of $109.3 billion. Major cryptocurrencies like Bitcoin and Ethereum saw significant declines, while sentiment continues to hover in fear territory.

Key Takeaways:

The total cryptocurrency market capitalization dropped by 2.4% to $3.06 trillion.
Most large-cap cryptocurrencies are in decline, with Bitcoin falling 2.4% to around $87,780.
Analysts attribute a bearish shift beginning from the October 10 crash, erasing approximately $1.3 trillion in market value.
Bitcoin's performance lags behind traditional assets like stocks and gold, facing pressure from whale selling and $5.1 billion in ETF outflows.
The current market sentiment remains fearful, evidenced by a Fear & Greed Index rating of 29.
U.S. Bitcoin spot ETFs experienced $142.19 million in net outflows, while spot Ether ETFs saw positive inflows of $84.59 million.
BlackRock mentioned Bitcoin as a top investment theme for 2025, reinforcing its commitment to the asset.

Crypto Winners & Losers

As of now, most of the leading cryptocurrencies by market capitalization are showing losses within the last 24 hours.

Bitcoin (BTC) has decreased by 2.4%, trading at $87,780, holding up relatively well compared to many major altcoins.

Ethereum (ETH) has seen a 2.6% dip, now priced at $2,968, while BNB is down 1.6%, trading at $851.51.

XRP (XRP) fell by 1.7%, with current prices at $1.90, and Solana (SOL) is down 3.0%, now available at $124.77, representing one of the day's notable declines.

Dogecoin (DOGE) is also facing pressure, dropping 1.5% to $0.1308.

Among smaller assets, Midnight (NIGHT) is notably struggling, plummeting 23.2% to $0.0777, making it one of the poorest performers of the day.

Conversely, a few smaller-cap tokens have defied the market trend. RaveDAO is leading the gains, up 37.0% at $0.6357, followed by Impossible Cloud Network, which rose by 32.9% to $0.496, and ECOMI, up 31.0% to $0.0002373.

Analysts from 10x Research suggest that October marked a crucial turning point for Bitcoin in 2025. The abrupt crash on October 10 transitioned the market from a bullish to a bearish phase, erasing about $1.3 trillion in crypto market value, as heavily leveraged exchanges like Binance faced extensive liquidation activity.

Bitcoin Lags Behind Traditional Assets

In a recent post by CryptoQuant, it was highlighted that traditional safe assets are experiencing significant conditions, with gold trading around 25% above its 200-day moving average and silver nearly 45% above, reminiscent of levels seen during the COVID upheaval in 2020.

While equities have remained robust, with the S&P 500 and Nasdaq only slightly below all-time highs, Bitcoin has struggled to mirror this positive trend. CryptoQuant observed a breakdown in Bitcoin's correlation with both technology stocks and gold since mid-2024, primarily due to ongoing selling from major holders and ETF outflows totaling about $5.1 billion.

As investors pivot towards metals and AI-linked stocks, Bitcoin's position remains under pressure, with upcoming inflation data—such as the PCE report—serving as a potential sentiment driver.

Market analyst Linh Tran from XS.com indicated that the U.S. Federal Reserve's policies likely influence Bitcoin's short to medium-term performance.

“While U.S. inflation has decreased from its peak (with last week's CPI y/y at 2.7%), recent indicators suggest that the disinflation process is slow and inconsistent,” she commented.

Market Levels & Events to Monitor

Currently, Bitcoin is trading near $87,784, reflecting just under a 1% dip for the day. The session saw an early attempt at recovery before dropping lower, momentarily testing the $85,000–$86,000 region.

The price movements remain volatile, with Bitcoin consolidating below the crucial psychological level of $90,000. If selling pressure continues, Bitcoin may approach $84,000, with further support expected between $82,000 and $83,000. For a more optimistic outlook, bulls need to reclaim and maintain levels above $90,000 to initiate a stronger rebound.

Ethereum is trading at approximately $2,961, showing a daily decrease of around 1.5%. Despite an earlier surge above $3,000, it could not maintain this level and has retreated into the $2,800–$2,900 range before stabilizing.

The price chart continues to reveal lower highs since October, showcasing persistent selling pressure. If the downward trend persists, Ethereum may revisit the $2,800 level, with a potential slide to $2,700 if conditions worsen. A healthier recovery will require Ethereum to decisively reclaim $3,000 and secure support above this mark.

The overall sentiment within the cryptocurrency market remains heavily in fear territory. The Crypto Fear and Greed Index currently rests at 29, unchanged from yesterday, indicating a consistent caution among investors. Although the sentiment has slightly improved compared to last week’s reading of 22 and last month’s extreme fear level of 10, it still falls significantly below neutral thresholds.

Ongoing weakness in key assets continues to undermine investor confidence, leading to heightened uncertainty.

Data shows that U.S. spot Bitcoin ETFs faced another day of net outflows, with $142.19 million exiting these products. However, cumulative net inflows remain strong at $57.26 billion, and total assets in U.S. Bitcoin ETFs stand at $114.99 billion, representing roughly 6.5% of Bitcoin’s market capitalization.

Grayscale’s GBTC suffered the most with $28.99 million in net outflows, followed by Grayscale’s Bitcoin fund, which saw $25.40 million exit, and Bitwise's BITB, losing $34.96 million. ARK & 21Shares' ARKB experienced $21.36 million in outflows, while VanEck’s HODL faced $33.64 million in outflows.

In contrast, U.S. spot Ethereum ETFs noted net inflows of $84.59 million, continuing their recent positive inflow trend. Cumulative net inflows for Ether ETFs have now reached $12.53 billion, with total assets totaling $18.20 billion, accounting for about 5.1% of Ethereum’s market capitalization.

The inflows were mainly driven by Grayscale’s ETH ETF, attracting $53.70 million, followed by Grayscale’s ETH Trust, which saw an addition of $30.89 million during the day. Other major issuers, including BlackRock’s ETHA and Fidelity’s FETH, reported flat daily flows, while smaller products from Bitwise, VanEck, Franklin, 21Shares, and Invesco saw no significant inflows or outflows.

Lastly, BlackRock has highlighted its spot Bitcoin ETF as one of its top three investment themes for 2025, placing it alongside Treasury bills and large-cap U.S. technology stocks.