Crypto Prices Update (Dec. 18): BTC, XRP, DOGE, and HYPE Decline Amid Wall Street Sell-off

Today's cryptocurrency market experienced a decline, influenced primarily by a pullback in U.S. equities, leading investors to steer clear of riskier assets. Bitcoin, Ethereum, and various altcoins, including XRP and Dogecoin, all recorded notable losses.

Key Takeaways

Total crypto market value decreased by approximately 1%, settling at $3.01 trillion.
Bitcoin is trading around $86,816, down 0.5%, while Ethereum dropped nearly 3% to $2,838.
XRP fell by 3.4% to $1.86; Dogecoin decreased by 4% to $0.1255.
The Crypto Fear & Greed Index remains in "extreme fear" territory at 17.
Liquidations in the derivatives market surged by 126%, highlighting increased selling pressure.

Chart showing crypto prices today decline

Market Overview

The overall crypto market value declined approximately 1% today, with the total market capitalization sitting at about $3.01 trillion. Bitcoin was trading close to $86,816 at the time of this report, reflecting a slight drop of 0.5% in the last 24 hours. Ethereum faced a more significant decrease, falling roughly 3% to $2,838.

Major altcoins also saw considerable losses. XRP slipped 3.4% to $1.86, while Dogecoin fell by 4% to $0.1255. Hyperliquid experienced one of the sharpest declines among larger tokens, witnessing a drop of about 8% to $24. Overall, market sentiment remains fragile, with the Crypto Fear & Greed Index inching up one point to 17, but still firmly entrenched in "extreme fear."

The derivatives market indicates continued pressure. Data from CoinGlass highlighted a 126% spike in 24-hour liquidations, reaching $536 million. There was also a 1.22% decrease in open interest across the crypto market, now at $124 billion. This suggests that traders are opting to reduce their leverage.

Tech Sell-off and Market Dynamics

The decline in crypto prices aligns with a sell-off in U.S. stocks on December 17, primarily affecting technology companies. The Nasdaq composite index fell 1.9% as companies like Nvidia and Oracle reported significant losses related to valuation issues and concerns around rising costs. The S&P 500 also dropped approximately 1.2%, reaching a three-week low.

This year, the cryptocurrency market has increasingly mirrored the moves of tech stocks. The recent decline in equities has permeated the digital asset space, prompting traders to shift away from riskier positions, which further exacerbated the downturn in leveraged crypto markets.

Short-term Projections and Analyst Insights

Bitcoin is currently trading within a broad consolidation range after failing to maintain its recent highs. Traders are closely monitoring the $85,000–$86,000 range as potential near-term support, with resistance levels identified just below $90,000. A breakout in either direction could heavily influence market trends as the year draws to a close, a period typically characterized by lower liquidity.

There has been an uptick in selling pressure from long-term holders. Citing K33 Research, Wu Blockchain reported that roughly $300 billion worth of previously dormant Bitcoin has entered the market this year. Long-term holder selling has reached its highest levels in five years over these past 30 days.

K33 Research data indicates that 2025 alone has seen nearly $300 billion of previously dormant Bitcoin return to the market. CryptoQuant reports that the last month has witnessed one of the largest distributions from long-term holders in over five years.

Earlier in the cycle, inflows into spot Bitcoin exchange-traded funds (ETFs) played a vital role in absorbing this supply. Recently, however, demand for ETFs has diminished, while derivatives activity and retail participation have also decreased, leaving the market more susceptible to selling pressure.

Julio Moreno, head analyst at CryptoQuant, has indicated that Bitcoin is currently past its peak in this cycle. He emphasizes the importance of monitoring demand waves rather than focusing solely on the halving process. According to Moreno, Bitcoin is descending towards a low point in its cycle, with recent volatility representing a part of a broader corrective phase rather than an isolated event.

Despite short-term weaknesses, some analysts maintain an optimistic long-term outlook for Bitcoin. The chief investment officer of Bitwise forecasts that Bitcoin’s volatility may decrease below that of Nvidia next year as institutional interest increases. He also predicts a new all-time high for Bitcoin, even if short-term price movements remain fluctuating.

For now, markets are attentive to upcoming U.S. CPI data and the Bank of Japan's policy deliberations this week, which are expected to influence risk sentiment in the near term.