Crypto prices today traded lower as risk appetite weakened across global markets, with Bitcoin and major altcoins drifting amid rising liquidations and fragile liquidity.
Summary
- Crypto prices today are in the red as weak sentiment, rising liquidations, and thin liquidity pressured the market.
- Bitcoin remains range-bound, with traders wary of macro risks and a potential Bank of Japan rate hike.
- Analysts are divided, with some warning of further downside while others see current levels as a holding or accumulation zone.
The total crypto market capitalization slipped by 1.1% to about $3.1 trillion. Bitcoin was trading around $89,690 at the time of writing, down 0.7% on the day. Among large-cap tokens, XRP hovered near $2 after losing 0.8%, Cardano fell 1.2% to $0.4034, Chainlink dipped 0.6% to $13.69, and Hyperliquid dropped roughly 0.7% to $29.
Investor confidence remained weak. The Crypto Fear & Greed Index fell five points to 16, keeping sentiment firmly in extreme fear territory. Market data showed a rise in forced position closures.
According to Coinglass data, roughly $295 million in crypto positions were liquidated over the past 24 hours, with long positions accounting for most of the losses. Despite the increased uncertainty, traders appear to be active, as shown by the 1.2% increase in total open interest across crypto derivatives to roughly $135 billion.
Macro pressure keeps traders cautious
The pullback followed weakness in traditional markets. U.S. stocks, especially technology shares, have faced selling pressure, and digital assets have moved in the same direction.
Additionally, uncertainty around Federal Reserve policy, including a recent 25 bps rate cut overshadowed by hawkish signals and divided views on future cuts, has prompted investors to de-risk. With liquidity typically thinner in mid-December, even modest sell orders have had an outsized impact on prices.
Additional caution has come from Japan, where traders are watching the Bank of Japan’s Dec. 18–19 meeting. Markets and economists widely expect a 25 basis point hike to 0.75%.
A potential interest rate increase could strengthen the yen and unwind carry trades that often feed into risk assets such as cryptocurrencies. Past rate moves by the BOJ have coincided with sharp declines in Bitcoin.
Short-term outlook and analyst views
Analysts warn that a failure to hold support in the mid-$80,000 range could accelerate selling, particularly if leverage is reduced in a low-liquidity market. A decisive move below that area may trigger more forced exits, with Bitcoin possibly falling to the $75,000-$80,000 range.
CryptoQuant CEO Ki Young Ju said the current market is neutral and uncertain, adding that holding existing positions may be a reasonable approach until clearer direction emerges. He also noted that recent price weakness has not been driven by aggressive leverage buildup.
In addition, major Ethereum holders are still accumulating, as per on-chain data cited by LD Capital founder Jack Yi. This suggests that some long-term investors are increasing their spot exposure rather than selling during the decline.
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