Why Is Cryptocurrency Down Today? – December 24, 2025

Today, the cryptocurrency market is experiencing a decline, with the total market capitalization decreasing by 1.1% over the past 24 hours, bringing it down to $3.02 trillion. This drop is occurring alongside general weakness in major assets, although trading volumes remain robust at $98.49 billion.

Key Takeaways

The total crypto market cap has decreased by 1.1% to $3.02 trillion amid widespread asset losses.
According to Galaxy Research, Bitcoin has not genuinely surpassed $100,000 when adjusted for inflation.
Bitcoin (BTC) is consolidating around $87,000, with critical support levels identified at $85,000-$86,000 and a potential downside risk toward $80,000.
Market sentiment is currently weak, with the Fear & Greed Index measuring at 27, indicating fears in the market.
On December 23, U.S. spot Bitcoin ETFs faced net outflows of $188.6 million, primarily driven by BlackRock’s IBIT.
Spot Ether ETFs also saw outflows of $95.5 million, reversing the previous day's gains.
Institutional investments persist, highlighted by Bitmine's acquisition of nearly $1 billion in ETH this December.

Why Is Cryptocurrency Down Today? – December 24, 2025

Current Market Overview: Winners & Losers

As of now, most of the top 10 cryptocurrencies by market cap are showing losses over the last 24 hours.

Bitcoin (BTC) is trading at $86,780, which represents a 0.8% drop in the past day, although it remains slightly higher for the week. Its market capitalization is approximately $1.73 trillion, sustaining its top position despite the market's downturn.

Ethereum (ETH) has dropped by 1.5% to $2,919, with a market cap of around $352 billion.

Notably, Solana (SOL) has decreased by 2.3% to $121.36, while BNB (BNB) is down 1.6% at $835.76. XRP (XRP) has also fallen by 1.8%, trading at $1.85.

Dogecoin (DOGE) is down 2.2%, currently priced at $0.1274. Furthermore, Cardano (ADA) has seen one of the steepest declines among large caps, falling 2.3% to $0.3554.

In contrast, some lesser-known tokens are performing well. SQD leads with a remarkable 43.7% increase, followed by Quantum Resistant Ledger, which has risen 31%, and pippin, up 21.8%—all standout performers during this generally risk-averse environment.

According to Galaxy Research, while Bitcoin may have achieved new highs in nominal figures, it has not genuinely cleared the $100,000 range when adjusted for inflation.

Alex Thorn, the head of research at Galaxy, explained that Bitcoin has never exceeded six figures when measured against 2020 dollars, despite reaching an all-time high above $126,000 in October.

Bitcoin Dominance and Altcoin Pressure

Bitcoin's share of the crypto market is increasing as trading slows down as the year closes, putting consistent pressure on altcoins, as noted in Wintermute's latest market report.

The report highlights a trend of capital rotating away from smaller tokens and back into Bitcoin and Ethereum, dampening hopes for the typical altcoin rally that follows strong movements from Bitcoin.

The broader market exhibits continued weakness. In the past 24 hours, Bitcoin traded below $87,000 while Ethereum hovered near $3,000. Altcoins experienced greater losses, particularly within the NFT sector, which fell over 9% as risk appetite diminished.

This week, significant volatility led to approximately $600 million in liquidations on Monday, followed by another $400 million on both Wednesday and Thursday.

Although Bitcoin attempted to rebound toward $90,000, its price action remains restricted. The combined open interest in Bitcoin and Ethereum perpetual contracts decreased by $5 billion, indicating reduced leverage but also exposing markets to sharp fluctuations amidst thin liquidity.

Despite the market fluctuations, traditional financial players are continuing to enter the crypto space, creating a more stable foundation for future growth. In December alone, Bitmine has added an impressive 67,886 ETH worth $201 million to its treasury, totaling nearly $953 million in purchases this month.

Upcoming Levels & Events to Watch

As of Tuesday, Bitcoin is trading around $86,926, showing a minor decrease of roughly 0.6% on the day. Earlier in December, BTC attempted to bounce back towards the $92,000–$94,000 range but could not maintain the momentum, resuming its overall downtrend following its peak above $120,000 in October.

In recent weeks, Bitcoin has been moving within a descending range, experiencing repeated rejections below $90,000 and increased selling pressure during rallies. The technical analysis indicates that BTC has broken through short-term support levels in November, with buyers now trying to protect the $85,000–$86,000 zone.

If Bitcoin falls below this area, it could descend toward $82,000, with further declines opening the possibility of reaching the psychological level of $80,000. On the upside, reclaiming $90,000 would signify price stabilization, with additional resistance located around $95,000.

Ethereum is priced around $2,926, experiencing a decrease of approximately 1.2% in the last 24 hours. The charts reveal that ETH is continuing to struggle after losing the $3,200–$3,300 range in November. Since then, its price action has remained heavy, registering lower highs and limited momentum on rebound attempts.

In recent sessions, ETH briefly dipped below $2,900 before finding temporary support, although the momentum is still fragile. If selling pressure resumes, the next significant support level lies around $2,800, followed by stronger historical support at approximately $2,650.

A recovery above $3,000 would be the first indicator of stabilizing price behavior, with additional resistance expected near $3,200.

Currently, market sentiment remains firmly in the fear zone, with the Crypto Fear and Greed Index at 27. This index has shown little improvement recently, indicating ongoing caution among market participants.

While there has been a slight sentiment recovery from last month’s extreme fear level of 12, it remains well below neutral, suggesting that investors are hesitant to take on further risks.

In recent data, U.S. spot Bitcoin ETFs recorded net outflows of $188.64 million on December 23, following a cooling period in institutional demand. BlackRock’s iShares Bitcoin Trust (IBIT) was at the forefront, shedding $157.34 million that day. Fidelity’s FBTC lost $15.30 million, while Grayscale’s GBTC saw $10.28 million in outflows. Bitwise’s BITB also recorded a slight decrease of $5.72 million.

Cumulatively, net inflows across all U.S. spot Bitcoin ETFs have reached $57.08 billion. The total trade value across these products reached $3.16 billion, while total net assets stand at $114.29 billion, representing about 6.5% of Bitcoin’s overall market capitalization.

U.S. spot Ether ETFs experienced a reversal on December 23, showing net outflows of $95.53 million after a day of inflows earlier in the week. Grayscale’s ETHE led these outflows, with a drop of $50.89 million that day, followed by BlackRock’s ETHA with $25.04 million in redemptions. Bitwise’s ETHW saw $13.98 million exit, and Franklin’s EZET experienced outflows of $5.61 million.

Cumulative net inflows across U.S. spot Ether ETFs stand at $12.43 billion, with total traded value across these products reaching $999 million. Total assets under management are at $18.02 billion, accounting for roughly 5.0% of Ethereum’s market cap.

In corporate news, BlackRock is expanding its team for its next phase in crypto, hiring new digital asset roles in New York, London, and Singapore. Robert Mitchnick, who oversees the firm’s digital assets strategy, announced the recruitment drive, emphasizing the need for several leadership positions within their digital assets team.