Daily Market Update: Cryptocurrency Falls as Stock Markets Show Weakness

TLDR

• Bitcoin declined 0.5% to $89,600 while Ethereum dropped to $3,120 in Sunday trading
• Major altcoins including XRP, Solana, and Dogecoin fell up to 2% as risk appetite weakened
• S&P 500 lost 0.6% last week and Nasdaq dropped 1.7% as tech stocks led market selloff
• Thin trading volumes heading into year-end are amplifying price movements across markets
• Traders are taking profits before 2026 as concerns grow over tech valuations and Fed policy

Crypto and stock markets both experienced losses over the weekend as investors showed caution heading into the final full trading week of 2025.

Bitcoin fell 0.5% to trade around $89,600 on Sunday. The price level kept the leading cryptocurrency just above lows reached during the previous week.

Ethereum decreased to approximately $3,120 in weekend trading. The second-largest cryptocurrency joined Bitcoin in posting modest losses.

Other major digital assets also moved lower throughout the day. XRP, Solana, and Dogecoin each declined by as much as 2%.

Stock markets faced similar pressure during the previous week. The S&P 500 index dropped 0.6% while the tech-heavy Nasdaq Composite fell 1.7%.

The Dow Jones Industrial Average bucked the trend with a 1.1% gain. The index benefits from lower exposure to technology companies compared to other benchmarks.

Tech Stocks Drive Market Weakness

Technology stocks led the broader market selloff last week. Oracle shares plunged 12.7% while Broadcom dropped more than 7%.

The technology sector within the S&P 500 declined 2.3% overall. Investors raised questions about heavy spending on artificial intelligence projects and whether earnings can support current stock prices.

Concerns about tech valuations have spread to cryptocurrency markets. Digital assets have struggled to build momentum since experiencing sharp declines in October.

Jeff Mei serves as chief operating officer at BTSE crypto exchange. He explained that investors remain hesitant due to October’s market drop and worries about overvalued stocks.

Mixed signals from the Federal Reserve are adding to market uncertainty. Traders are reconsidering whether elevated technology stock prices make sense as 2026 approaches.

Trading Volumes Drop Sharply

Market volumes have decreased substantially in recent trading sessions. Lower participation is causing larger price swings than normal market conditions would produce.

Mei pointed out that Bitcoin ETF inflows continue to show positive numbers. The Federal Reserve has also begun purchasing securities again, which adds liquidity to financial markets.

Year-end positioning appears to be the main driver of current weakness. Many traders are locking in profits now and plan to evaluate new positions when 2026 begins.

Augustine Fan is head of insights at SignalPlus. He said Sunday’s crypto selloff extends the negative momentum from Friday’s trading session.

Fan expects Bitcoin and Ethereum to continue leading other tokens lower. Market sentiment has turned negative and trading volumes have collapsed since October.

He warned that thin liquidity conditions could amplify downside price movements in the weeks ahead. The path of least resistance points toward softer prices through year-end.

Fan advised against overanalyzing hourly or daily price changes. Current market conditions feature extremely low volumes that distort normal trading patterns.

U.S. stock futures showed small gains in Monday’s Asian trading hours. S&P 500 and Nasdaq 100 futures each rose about 0.2%.

However, risk appetite remains weak across markets. Investors continue questioning if current valuations in technology stocks can hold into the new year.

Several key economic reports are scheduled for release this week. November retail sales data and nonfarm payrolls figures will be published on Tuesday after delays from a fall government shutdown.

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