Bitcoin is wobbling again. And it’s dragging the broader crypto market with it.
On Wednesday, BTC slipped 1.5% to $86,580, partially giving back Tuesday’s gains. Ether fell back to $2,930, and XRP stalled around $1.90. The overall crypto market cap dropped below $3 trillion for the third time this mont testing a psychological floor that traders will watch closely.
This isn’t a retail panic. Selling pressure is hitting large-cap coins with active ETF exposure, signaling that institutions are reshuffling positions rather than everyday traders hitting the panic button.
Institutions are shifting gears
According to Alex Kuptsikevich, chief market analyst at FxPro, this is all about institutional sentiment.
“Major coins are increasingly victims of changing institutional sentiment as investors reassess risk exposure into year-end.”
These same tokens, which saw strong inflows from institutions earlier this year, are now leading the downside as investors cool off.
Meanwhile, BTC’s pullback is happening even as Asian equity markets show moderate gains. Indices like the Hang Seng, Shanghai Composite, Kospi, and IDX are climbing on expectations of fiscal stimulus from Beijing, following a string of weak November economic numbers.
The dollar is flexing
The dollar index bounced back to 98.30 after hitting a 2.5-month low of 97.87 on Tuesday. U.S. jobs data added fuel: 64,000 jobs in November vs. 50,000 forecast, while unemployment rose to 4.6%, the highest since 2021.
A stronger dollar usually puts pressure on BTC and other dollar-denominated assets, like gold though gold remains firm above $4,300 per ounce.
Fear is creeping in
The crypto fear and greed index has dropped to 11, putting the market deep into the fear zone.
Unlike the pullbacks in February and April, this one looks more serious. Multiple large-cap coins are breaking intermediate support levels, signaling that this might not be a routine correction.
From a technical view, the next key support zone is near $81,000. That’s where November lows converge with March consolidation levels. If BTC dips further, the $60,000–$70,000 range becomes the next significant zone—a historically important range that acted as resistance during the 2021 and 2024 cycles.
Liquidity is thin
Liquidity is thinning as the year-end approaches. FlowDesk data shows declining market depth, with traders reducing leverage and closing positions. Weak liquidity amplifies price swings, especially during U.S. trading hours, and overall exchange volumes remain historically low.
On-chain signals are mixed
CryptoQuant data suggests the recent Bitcoin rally may have run its course, opening the door to a deeper corrective phase before the next big move.
But there’s a silver lining: long-term accumulation is still happening. Glassnode reports that corporations and financial firms are steadily buying BTC, not just miners. A recent example: Strategy’s purchase of 10,624 BTC (~$1 billion) shows selective accumulation continues even as short-term momentum weakens.
Bottom line
Crypto markets are testing a critical floor. Institutions are adjusting, retail fear is creeping in, and liquidity is tight. But long-term buyers are still in the game.
If you’re watching BTC, ETH, or XRP, pay attention to $81,000 as a key support. A break could open the door to lower ranges but steady institutional accumulation suggests this isn’t a total meltdown.
The market might be shaky now, but the smart money is quietly stacking for what’s next.
