Bitcoin and major tokens fell on Wednesday as the total crypto market value fell 1.4% to $2.97 trillion, falling back below the $3 trillion level after another failed attempt to sustain a rebound.
Bitcoin traded around $86,900, failing to sustain a breakout above $90,000 for the third time in as many days, while ether slipped 1.5% to around $2,927. XRP, solana and dogecoin saw larger losses, with Solana down almost 3% and XRP almost 2%.
The pullback occurred even as some stock indexes hit new record highs, reinforcing the sense that capital is turning to safety rather than high-beta bets.
Global stocks hit a new record high as traders focused on strong U.S. growth that strengthened the case for stronger corporate profits.
The MSCI all-country world index rose for a fifth straight session on Wednesday, bringing its year-to-date gain to 21%. Asian stocks added 0.2%, led by technology stocks after the S&P 500 closed at an all-time high on Tuesday.
Volumes were low heading into the Christmas holidays, and futures pointed to a moderate opening in Europe.
Alex Kuptsikevich, chief market analyst at FxPro, said the market is showing signs of tighter seller control, with repeated bounces failing to materialize.
“The market was unable to repeat the robust rebound from the local bottom, indicating increased pressure from sellers,” Kuptsikevich said in an email. He added that as crypto remains far from recent highs, big players are increasingly behaving as if the market is entering a bearish phase, preferring measured sales over sharp retail moves.
Kuptsikevich also highlighted the broader context of risks. Bitcoin was sold off again after briefly surpassing $90,000 earlier this week, despite a decisive rally in gold and other precious metals and a weakening dollar.
This combination, he says, suggests that investors are reassessing their appetite for risk and that risk aversion could spread further.
“In the coming weeks, we can expect an even sharper decline in cryptocurrencies, as well as a spread of risk aversion towards stocks and currencies of developing countries,” he said.
Flow data also shows that investors are taking a step back.
CoinShares said global investment products saw outflows of $952 million last week, ending a three-week streak of inflows. Bitcoin products saw outflows of $460 million, while Ethereum funds lost $555 million. The XRP and Solana funds were exceptions, with inflows of $63 million and $49 million, respectively.
