Crypto prices slipped on December 18 as a pullback in U.S. equities pushed investors away from riskier assets, dragging the total crypto market value down to just over $3 trillion. Weakness in tech stocks spilled into digital assets, adding to volatility across the market.
Bitcoin was trading near $86,800 at press time, down about 0.5% over the past 24 hours, while Ethereum saw steeper losses, falling roughly 3% to around $2,840. Selling pressure was more pronounced across major altcoins. XRP dropped 3.4% to $1.86, Dogecoin slid 4% to about $0.126, and Hyperliquid posted one of the sharpest declines among larger tokens, sinking nearly 8% to $24.
Market sentiment remained fragile despite a slight uptick in the Crypto Fear & Greed Index, which rose by one point to 17 but stayed firmly in “extreme fear” territory. Derivatives data also pointed to ongoing pressure, with 24-hour liquidations jumping 126% to $536 million. Open interest across the market fell 1.22% to $124 billion, suggesting traders were scaling back leverage.
The downturn came alongside a sell-off in U.S. stocks on December 17, led by technology names. The Nasdaq dropped nearly 2% as shares of Nvidia, Broadcom, Oracle and Alphabet fell on valuation concerns, rising costs and slower-than-expected returns from AI investments. The S&P 500 also slid about 1.2%, touching a three-week low.
Crypto has increasingly moved in step with tech stocks this year, and as equities weakened, traders rotated out of higher-risk positions. That shift added further downside pressure in leveraged crypto markets, amplifying losses.
In the short term, Bitcoin continues to trade within a wide consolidation range after failing to hold recent highs. Traders are closely watching the $85,000–$86,000 area as key support, with resistance just below $90,000. A decisive move in either direction could shape market direction into year-end, when liquidity typically thins.
Analysts also point to rising supply pressure. According to Wu Blockchain, citing K33 Research, roughly $300 billion worth of previously dormant Bitcoin has entered the market this year, with long-term holder selling reaching its highest level in five years. Earlier inflows into spot Bitcoin ETFs helped absorb much of that supply, but demand has cooled in recent weeks, leaving prices more exposed to spot selling.
Still, not all outlooks are bearish. CryptoQuant analyst Julio Moreno said Bitcoin is moving through a broader corrective phase rather than reacting to a single shock, noting that the focus should be on demand cycles rather than the halving alone. Some analysts remain constructive over the longer term, with expectations that growing institutional participation could eventually reduce volatility and support new highs.
For now, markets remain cautious, with traders watching upcoming U.S. CPI data and the Bank of Japan’s policy decision, both of which could set the tone for risk appetite in the days ahead.
