TLDR
- Bitcoin slipped 0.5% to $89,600 while Ethereum fell to $3,120 during Sunday’s trading session
- Altcoins including XRP, Solana, and Dogecoin recorded losses of up to 2% across the board
- Stock markets struggled last week with S&P 500 down 0.6% and Nasdaq falling 1.7%
- Low trading volumes are making price swings larger as year-end approaches
- Market analysts say profit-taking and caution over tech stock valuations are driving weakness
Digital asset markets continued their downward trend over the weekend as both crypto and traditional stock markets showed weakness heading into the year’s final full trading week.
Bitcoin posted a 0.5% decline to reach approximately $89,600 on Sunday. The leading cryptocurrency remained close to the low points seen in the prior week.
Ethereum also moved lower, trading around $3,120. The drop mirrored the broader weakness seen across cryptocurrency markets.
Major alternative cryptocurrencies followed the same pattern. XRP, Solana, and Dogecoin each recorded losses reaching 2% during the day’s trading.
Traditional stock markets also struggled in recent sessions. The S&P 500 finished last week down 0.6% while the Nasdaq Composite lost 1.7%.
The Dow Jones Industrial Average managed a 1.1% increase. This index holds fewer technology stocks than the S&P 500 and Nasdaq.
Technology Sector Leads Decline
Last week’s stock market losses were concentrated in the technology sector. Oracle shares crashed 12.7% while Broadcom fell over 7%.
The S&P 500’s technology sector dropped 2.3% for the week. Questions about artificial intelligence spending and company earnings sustainability triggered the selloff.
Concerns about high tech stock prices have affected cryptocurrency markets as well. Digital assets have failed to regain traction following October’s steep decline.
Jeff Mei is chief operating officer at crypto exchange BTSE. He noted that investors are staying cautious because of October’s downturn and worries about inflated stock market values.
The Federal Reserve’s unclear policy direction is adding to market jitters. Market participants are questioning whether technology companies can justify their current stock prices in 2026.
Volume Decline Impacts Price Action
Trading activity has fallen sharply in recent days. Reduced market participation is causing more dramatic price movements than usual.
Despite the negative price action, Bitcoin ETF inflows remain in positive territory. The Federal Reserve has also resumed buying securities, which injects liquidity into markets.
Year-end portfolio adjustments seem to be behind much of the current selling. Traders are securing profits now and will decide on new cryptocurrency positions when 2026 starts.
Augustine Fan leads insights at SignalPlus trading firm. He stated that Sunday’s crypto weakness continues Friday’s downward momentum.
Fan anticipates Bitcoin and Ethereum will keep pulling other tokens down. Market sentiment has soured and trading volumes have shrunk dramatically since October.
Low liquidity levels could make price drops more severe in coming weeks. Fan sees the easiest path as pointing toward lower prices through the end of December.
He recommended not focusing too heavily on short-term price movements. The current environment features unusually low volumes that create distorted price action.
Stock index futures posted modest gains during Monday’s Asian session. Both S&P 500 and Nasdaq 100 futures climbed roughly 0.2%.
Still, investor confidence remains fragile overall. Questions persist about whether tech stock valuations make sense heading into the new year.
Important economic data releases are coming this week. Tuesday will bring November retail sales numbers and nonfarm payrolls data that were postponed due to a government shutdown earlier this fall.
The November consumer price index report is scheduled for Thursday. These reports could influence market direction as 2025 winds down.
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