Why is Crypto Market Down Today? (18 Dec)

The crypto market declined by 0.74% in the past 24 hours, adding to a 7% weekly slump. Bitcoin fell sharply below $88,000, signaling continued bearish pressure. Ethereum price also added heavily sold, and this added to the weakness in the market. 

Other large altcoins such as Solana, Dogecoin, and Cardano fell even further. The current decline indicates that traders are more cautious as technical indicators have a red color throughout.

Here’s Why Crypto Market Is Down Today

The crypto market dropped sharply today as total market capitalization fell to $2.93 trillion, signaling broader weakness. This fall precedes a decisive Bank of Japan (BoJ) move on December 19 that would impact on the world liquidity.

Japan can increase the interest up to 0.75, which is the highest in 30 years. Being the biggest foreign purchaser of Treasury bonds in the U.S, any tightening by BoJ will reduce international dollar liquidity. This generally stresses risk assets, such as Bitcoin and the crypto market in general.

At the same time, the U.S. regulation backslash has contributed to stress in the market. The Senate Banking Committee has put off the crypto market structure bill that has been pending. Investors will now have policy uncertainty as hearings will commence in early 2026.

There were also high outflows of ETFs in the crypto market. Bitcoin and Ethereum ETFs had net outflows of over $1 billion over the last 48 hours. This is an indication of institutional investors distribution wave.

Also, the unstable price movement led to the liquidation of more than 400 million leveraged accounts in major exchanges. Although the state of being oversold indicates that there could be a short-run recovery, the situation is still not ideal.

Cryptofinance is under sudden macroeconomic influence and dwindling investor trust. The traders are now keeping a close eye on the move of BoJ to know which way to proceed.

What’s Next For Cryptocurrency Market?

Bitcoin price now trades at $86,741, down 0.3%, while Ethereum dropped 3.9% to $2,835. BNB is priced at $839, Solana at $123, and Dogecoin has slipped below $0.13. Cardano recorded a 4% drop in the same period. 

The market sentiment is also wary, and analysts believe that Bitcoin would fall to around $80,000 should selling pressure accumulate. Ether might also drop to $2,500 in case the bears hold on.