The cryptocurrency market remained under pressure on Wednesday as total market value slipped below the $3 trillion mark once again. This is the third test of this key support level this month, raising concerns that the market could be heading into a deeper correction phase.
The decline has been led by large-cap cryptocurrencies, particularly those with strong institutional and ETF exposure, indicating cautious behavior from professional investors rather than panic selling by retail traders.
Bitcoin Price Falls as Major Cryptos Lead the Decline
Bitcoin (BTC) dropped nearly 1.5%, trading around $86,600, erasing part of its earlier weekly gains. The pullback weakened overall market sentiment and slowed recovery efforts across major altcoins.
- Ethereum (ETH) retreated toward $2,930
- XRP slipped below the $1.90 level after failing to hold key resistance
These assets had benefited the most from early-year institutional inflows, but are now leading losses as investor confidence cools toward year-end.
“Major cryptocurrencies are increasingly affected by shifts in institutional sentiment,” said Alex Kuptsikevich, Chief Market Analyst at FxPro, noting that large investors are trimming risk exposure.
Crypto Lags as Asian Stock Markets Edge Higher
Bitcoin’s weakness stood in contrast to Asian equity markets, which posted modest gains. Indexes such as the Hang Seng, Shanghai Composite, Kospi, and Indonesia’s IDX moved higher during the session.
Regional stocks were supported by expectations of additional stimulus from China, following weaker-than-expected economic data in November. This contrast highlights how crypto prices remain closely tied to global liquidity and U.S. dollar movements, rather than regional growth optimism.
Stronger US Dollar Adds Pressure on Crypto Prices
The U.S. Dollar Index (DXY) rebounded to around 98.30, after touching a two-and-a-half-month low earlier in the week.
The dollar’s rise followed U.S. employment data showing:
- 64,000 jobs added in November, above market forecasts
- Unemployment rising to 4.6%, the highest level since 2021
A stronger dollar typically puts pressure on Bitcoin and other dollar-denominated assets, adding another headwind for crypto markets. Gold, however, remained stable above $4,300 per ounce.
Crypto Market Sentiment Slips Into Extreme Fear
Investor sentiment has weakened sharply alongside falling prices. The Crypto Fear & Greed Index dropped to 11, its lowest reading in a month, firmly within “extreme fear” territory.
Unlike previous pullbacks in 2025, the current decline has seen multiple large-cap cryptocurrencies break important technical support levels, suggesting the move could extend beyond a short-term correction.
Key Bitcoin Support Levels Under Watch
From a technical perspective, analysts are closely watching $81,000 as Bitcoin’s next major support zone. This level aligns with November lows and previous consolidation areas.
If BTC fails to hold above that level, prices could move toward the $60,000–$70,000 range, a historically important zone that acted as resistance in earlier market cycles.
Thin Liquidity Increases Volatility
Market volatility has been amplified by low liquidity, a common trend toward the end of the year.
According to FlowDesk, market depth has declined and leverage remains subdued as traders reduce exposure and close positions. Reduced liquidity has increased intraday price swings, especially during U.S. trading hours, while overall exchange volumes remain below annual averages.
On-Chain Data Sends Mixed Signals
On-chain indicators present a mixed outlook for Bitcoin:
- CryptoQuant suggests BTC’s recent rebound may have lost momentum, increasing the risk of a deeper pullback
- Glassnode reports continued long-term accumulation by corporations and financial institutions, expanding beyond miners
Notably, Strategy recently purchased 10,624 BTC, worth nearly $1 billion, showing selective buying continues despite short-term weakness.
Market Outlook: $3 Trillion Level Remains Critical
The global crypto market is once again testing the $3 trillion market capitalization support, with Bitcoin, Ethereum, and XRP under pressure as institutional investors reassess risk amid tighter liquidity and a stronger dollar.
While long-term accumulation trends remain intact, fragile sentiment and low liquidity suggest continued volatility in the near term. Whether the $3 trillion level holds may decide if the market stabilizes — or slips into a broader year-end downturn.
