Crypto markets fell on Sunday as a broader decline in risk assets extended into the final full trading week of the year, with investors remaining cautious on concerns over technology valuations, fading momentum in US stocks and mixed signals from the Federal Reserve.
Bitcoin fell about 0.5% to trade near $89,600, hovering just above last week’s lows, while ether dipped slightly lower to around $3,120. Most major tokens traded lower on the day, with XRP, Solana and Dogecoin posting losses of up to 2%, according to market data.
The move came as U.S. stock index futures rose modestly after last week’s technology-led sell-off, which was sparked by renewed scrutiny of heavy spending on artificial intelligence and earnings sustainability.
While S&P 500 and Nasdaq 100 futures rose about 0.2% in Asian morning hours Monday, risk appetite remained fragile as investors reassess whether elevated valuations in technology stocks can be justified into 2026.
This caution has spilled over into crypto markets, which have struggled to regain momentum after October’s sharp decline. Trading volume has thinned noticeably in recent sessions, amplifying price movements and reinforcing a defensive tone.
“Right now, investors are hesitant to invest in cryptocurrencies given October’s plunge, concerns about an overvalued US stock market and mixed signals from the Fed,” said Jeff Mei, Chief Operating Officer at crypto exchange BTSE, in a Telegram message.
“That said, Bitcoin ETF inflows are still net positive, and the Fed has started buying securities back into the market, adding liquidity that could flow toward stocks and crypto,” he added.
Mei added that year-end positioning is likely driving the current weakness. “Given that it is the end of the year, traders will likely take profits now and will reassess whether they want to initiate new crypto positions in early 2026,” he said.
Others warned that thin liquidity could exaggerate downward moves in the coming weeks.
“This morning’s crypto selloff is a continuation of the negative bias from Friday, and we expect the majors to continue to lead the way lower,” said Augustine Fan, head of insights at SignalPlus. “As trading volume has fallen significantly since the 10/10 event and sentiment has turned broadly negative, you can expect BTC and ETH to act as a hedging proxy for each other token as traders adjust exposures.”
Fan cautioned against over-interpreting short-term price fluctuations. “We wouldn’t read too much into the day-by-day or hour-by-hour under these thin conditions, but overall sentiment remains deeply negative and the path of lower resistance likely points to softer prices at the end of the year,” he said.
Despite the near-term pressures, US-listed bitcoin exchange-traded funds and ongoing liquidity support from central banks could provide a more constructive backdrop when markets fully reopen in early 2026.
