Bitcoin and major tokens fell on Wednesday as the total crypto market capitalization fell 1.4% to $2.97 trillion, falling back below the $3 trillion level after another failed attempt to sustain a rally.
Bitcoin traded around $86,900, failing to break above $90,000 for the third time in as many days, while ether fell 1.5% to around $2,927. XRP, solana and dogecoin had bigger losses, with solana down almost 3% and XRP almost 2%.
The pullback came even as some stock indexes rose to new records, reinforcing the sense that capital is leaning toward safety rather than high beta bets.
Global shares hit another record high as traders leaned into strong US growth that bolstered the case for firmer corporate earnings.
MSCI’s All Country World Index rose for a fifth straight session on Wednesday, lifting its year-to-date gain to 21%. Asian shares rose 0.2%, led by technology stocks, after the S&P 500 closed at a record high on Tuesday.
Volumes were light ahead of the Christmas holiday and futures pointed to a muted opening in Europe.
Alex Kuptsikevich, chief market analyst at FxPro, said the market is showing signs of heavier seller control, with repeated rebounds not being completed.
“The market was unable to repeat the robust recovery from the local bottom, indicating increased pressure from sellers,” Kuptsikevich said in an email. He added that as crypto remains far from recent highs, major players are increasingly behaving as if the market is shifting into a bear phase, preferring measured selling to sharp retail-driven moves.
Kuptsikevich also pointed to the broader risk background. Bitcoin sold off again after briefly pushing above $90,000 earlier this week, despite a decisive rise in gold and other precious metals and a weakening dollar.
This combination, he said, suggests that investors are reassessing risk appetite and that risk from the move may be further spread.
“In the coming weeks, we can expect an even more pronounced decline in cryptocurrencies, as well as the spread of risk aversion to stocks and currencies in developing countries,” he said.
Flow data also shows that investors are stepping back.
CoinShares said global investment products saw $952 million in outflows last week, ending a three-week streak of inflows. Bitcoin products saw $460 million in outflows, while ethereum funds shed $555 million. XRP and Solana funds were the exceptions with inflows of $63 million and $49 million respectively.
