Daily Market Update: Crypto and Stock Markets Fall as Tech Stocks Continue December Selloff

TLDR

• Bitcoin fell 0.5% to $89,600 while Ethereum dropped to $3,120 as crypto markets declined on Sunday
• XRP, Solana, and Dogecoin posted losses of up to 2% as investors showed caution heading into year-end
• Trading volumes have thinned in recent sessions, making price movements larger and adding to market weakness
• Year-end profit-taking is driving current selling pressure as traders close positions before 2026
• S&P 500 dropped 0.6% last week while Nasdaq fell 1.7% as tech stocks led a broader market selloff

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Crypto and stock markets both declined over the weekend as investors pulled back from risk assets heading into the final full trading week of 2025.

Bitcoin dropped 0.5% to trade near $89,600 on Sunday. The largest cryptocurrency stayed just above the lows seen last week.

Bitcoin (BTC) Price

Ethereum fell to around $3,120 in trading. Other major tokens also moved lower throughout the day.

XRP, Solana, and Dogecoin each posted losses of up to 2%. The declines affected most major cryptocurrencies across the market.

Stock markets also struggled last week. The S&P 500 fell 0.6% while the Nasdaq Composite dropped 1.7%.

E-Mini S&P 500 Dec 25 (ES=F)

The Dow Jones Industrial Average gained 1.1%. The index has less exposure to technology stocks than other benchmarks.

Technology stocks led the stock market selloff. Oracle dropped 12.7% for the week while Broadcom fell more than 7%.

The S&P 500 tech sector declined 2.3%. Concerns about artificial intelligence spending and company earnings drove the selling.

Trading volumes in crypto markets have dropped sharply in recent sessions. Lower volumes are making price swings larger than normal.

Jeff Mei is chief operating officer at crypto exchange BTSE. He said investors are hesitant given October’s market drop and concerns about stock valuations.

Market Conditions and Trading Activity

Mixed signals from the Federal Reserve are adding to investor caution. Market participants are reassessing whether current technology stock prices make sense heading into 2026.

The cautious mood in stock markets is affecting crypto trading. Digital assets have struggled to gain momentum since October’s sharp decline.

Mei noted that Bitcoin ETF inflows remain positive. The Federal Reserve has also started buying back securities, which adds liquidity to markets.

Year-end positioning appears to be driving current weakness. Traders are taking profits now and plan to reassess crypto positions in early 2026.

Thin Trading Volumes Ahead

Augustine Fan is head of insights at SignalPlus. He said the morning selloff continues the negative trend from Friday.

Fan expects Bitcoin and Ethereum to lead other tokens lower. Traders are adjusting their positions as sentiment has turned negative.

Trading volumes have dropped sharply since October. Fan warned that thin liquidity could make downside moves larger in coming weeks.

He cautioned against reading too much into short-term price changes. The overall sentiment remains negative with the path pointing to lower prices into year-end.

U.S. stock futures showed modest gains in Asian trading Monday. S&P 500 and Nasdaq 100 futures rose about 0.2%.

Risk appetite remains weak despite the small rebound. Investors continue to question if high technology stock valuations are justified.

Several economic data reports are scheduled for release this week. November retail sales figures and nonfarm payrolls data will come out Tuesday.

The November consumer price index is due Thursday. These reports were delayed due to a government shutdown in the fall.

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