Why Is Crypto Down Today? – December 16, 2025

The cryptocurrency market is experiencing a downturn today with a 4.2% decrease in market capitalization, bringing it close to the $3 trillion mark at $3.02 trillion. In the last 24 hours, 95 of the top 100 cryptocurrencies have seen a price drop, while total trading volume has reached $134 billion.

Key Takeaways

The cryptocurrency market fell 4.2%, approaching $3 trillion in market capitalization.
Bitcoin (BTC) decreased by 4%, trading at $86,184, while Ethereum (ETH) dropped 6.8% to $2,924.
Five coins in the top 100 saw gains, while four experienced significant losses.
Concerns over monetary policy and market uncertainties are fueling volatility.
The current market sentiment is fearful, with a fear and greed index of 22.

Why Is Crypto Down Today

Current Market Overview

As of now, all of the top 10 cryptocurrencies by market capitalization are down. Bitcoin (BTC) has fallen by 4%, currently priced at $86,184. Ethereum (ETH) follows with a notable decline of 6.8%, currently at $2,924—the largest drop among the major cryptocurrencies.

Next in line, XRP dropped by 5.9%, trading at $1.88, while Tron (TRX) experienced the least decline of 0.6%, currently priced at $0.2788. Among the top 100 coins, only five saw price increases over the past day, such as MemeCore (M), which rose by 3.9% to $1.73, and Provenance Blockchain (HASH), which increased by 2.2% to $0.03079.

Conversely, three coins faced steep losses, including Aster (ASTER), which decreased by 12.4% to $0.8193, as well as Ondo (ONDO) and Pump.fun (PUMP), both falling by 10% to $0.4046 and $0.002418, respectively.

Interestingly, the US Financial Stability Oversight Council has removed cryptocurrency from its list of systemic financial threats in its annual report for 2025. Additionally, the US Securities and Exchange Commission (SEC) has dismissed or paused nearly 60% of crypto-related cases this year.

Market Dynamics and Future Projections

Investment analyst and co-founder of Coin Bureau, Nic Puckrin, noted that Bitcoin continues to struggle as noticeable price declines persist into Q4. Currently hovering around $86,000, BTC is nearing its significant 100-week moving average support level at about $84,800. The downturn appears influenced by fears surrounding AI bubbles and shifts in monetary policy expectations.

The market initially anticipated Kevin Hassett, identified as an “ultra-dove,” for the next U.S. Federal Reserve Chair position. However, Kevin Warsh, who takes a more hawkish stance, seems to be taking the lead. “Warsh is likely to adhere to the FOMC’s predictions of only one additional rate cut in 2026,” Puckrin explained.

Mentioning that December is commonly a time for tax-loss harvesting, Puckrin pointed out that Bitcoin is one asset where many investors have suffered losses. Stressing the lackluster end to 2025, he warned that if conditions continue, BTC might drop below the $80,000 mark. Important price levels to track in the short term include an ETF cost basis at $83,800 and support levels at $81,200, which represent market averages.

In their analysis, Bitunix remarked on the U.S. Non-Farm Payroll (NFP) report set for release today and suggested it—and the upcoming CPI data—might be viewed as unreliable due to government shutdowns. They opined that weak NFP data could compound volatility across risk assets, including cryptocurrencies.

Key Levels and Events to Monitor

As of Monday morning, BTC is valued at $86,184. Its price fell from a nearby $89,935 to a daily low of $85,427. Over the past week, BTC has decreased by 4.3%, with the intraweek high standing at $94,267. While there are opinions suggesting BTC could rebound above $90,000 and attempt another ATH, a short-term decline below $80,000 seems plausible.

BTC Trading

Ethereum's current price is $2,924 after dropping from a day-high of $3,171 to below $3,000 at $2,895. ETH has slipped 5.6% over the week, fluctuating between $2,919 and $3,390. A significant drop could see it approach levels around $2,780 and $2,650, while a recovery could see prices cross back to $3,000 and $3,120.

The prevailing sentiment in the crypto market remains within the fearful zone, reflected in the fear and greed index which reads 22 today, down from 27 yesterday. This indicates a pattern of apprehension among market participants regarding short- to mid-term performance.

Crypto Sentiment

On the first trading day of this week, U.S. BTC spot exchange-traded funds (ETFs) experienced notable outflows totaling $357.69 million, reducing total net inflow to $57.55 billion. Of the twelve BTC ETFs, five saw outflows with none recording inflows, primarily driven by Fidelity, which accounted for $213.12 million of the negative flow, followed by Bitwise with $44.32 million.

BTC ETF Flows

Moreover, ETH ETFs in the U.S. observed negative flows for the third consecutive day, amounting to $224.78 million on December 15. The cumulative net inflow has now decreased to $12.86 billion. Six out of nine funds experienced outflows, including a significant loss recorded by BlackRock ($139.09 million) and Grayscale ($55.28 million).

ETH ETF Flows

In the midst of these developments, Grayscale remains optimistic, asserting that Bitcoin is poised for recovery and may set a new all-time high during the first half of 2026.

Frequently Asked Questions

The recent drop in the crypto market parallels a decline in the U.S. stock market which closed lower on December 15. The S&P 500 saw a decrease of 0.16%, the Nasdaq-100 fell by 0.51%, and the Dow Jones Industrial Average fell by 0.086%. Technology stocks are under pressure amid increasing concerns over the AI bubble.

The current market decline is not unexpected and persists despite potential slight price recoveries. Some analysts suggest that we may be witnessing a bear market phase.