Cryptocurrency markets fell on Sunday as a broader pullback in risk assets extended into the last full trading week of the year, with investors remaining cautious on concerns about technology valuations, fading momentum in U.S. stocks and mixed signals from the Federal Reserve.
Bitcoin fell about 0.5% to trade near $89,600, just above last week’s lows, while Ethereum edged lower to around $3,120. Most major coins were lower on the day, with XRP, Solana and Dogecoin down as much as 2%, according to market data.
The move comes as U.S. stock futures rebound slightly after last week’s tech-led selloff, which was triggered by renewed scrutiny of artificial intelligence spending and earnings sustainability.
Although S&P 500 and Nasdaq 100 futures rose about 0.2% in early Asian trading on Monday, risk appetite remains fragile as investors reassess whether higher valuations for technology stocks in 2026 are justified.
This caution has spread to the cryptocurrency market, which has struggled to regain momentum after a sharp decline in October. Trading volume has been significantly lower in recent sessions, amplifying price action and reinforcing the defensive tone.
Jeff Mei, chief operating officer of cryptocurrency exchange BTSE, said in a Telegram message: “Investors are currently hesitant to invest in cryptocurrencies, given the decline in October, concerns about overvaluation of the U.S. stock market, and mixed signals from the Federal Reserve.”
“That being said, inflows into the Bitcoin ETF remain net positive and the Fed has begun buying back securities in the market, adding to potential flows to stocks and cryptocurrencies,” he added.
May added that year-end positioning may be driving the current weakness. “Given that it is the end of the year, traders may be taking profits now and will reassess whether they want to open new cryptocurrency positions in early 2026,” he said.
Others warned that thinning liquidity could exacerbate the downward trend in the coming weeks.
“This morning’s cryptocurrency sell-off is a continuation of Friday’s negative bias, and we expect major currencies to continue to lead the decline,” said Augustine Fan, head of insights at SignalPlus. “Since the 10/10 event, trading volume has dropped significantly and market sentiment has generally turned negative, with BTC and ETH expected to act as hedging proxies for all other coins as traders adjust their exposure.”
Fan warns against reading too much into short-term price swings. “We wouldn’t analyze too much on a day-to-day or hour-to-hour basis in this light scenario, but overall sentiment remains very negative and a falling resistance path could point to softer prices towards the end of the year,” he said.
Despite short-term pressures, continued liquidity support from U.S.-listed Bitcoin exchange-traded funds and central banks may provide a more constructive backdrop once markets fully reopen in early 2026.