1. Massive Liquidations and Institutions
There have been significant outflows of institutional capital. Just in the last few days, crypto investment funds saw withdrawals of nearly $952 million. Of that figure, approximately $460 million came directly from Bitcoin (BTC), creating a selling pressure that drags down the rest of the "altcoins" (such as ETH, SOL, and ADA).
2. Regulatory Uncertainty in the U.S.
One of the main triggers this week has been the U.S. Senate's decision to postpone key legislation on cryptocurrencies until 2026. This has cooled investor enthusiasm that was hoping for a clearer legal framework by the end of this year, causing many to prefer to withdraw their profits before the end of 2025.
3. The 'Wall' of $90,000
Bitcoin has tried to break the psychological barrier of $90,000 on several occasions without success. Unable to break that ceiling, the market reacts with a 'profit-taking' (selling to secure gains), which has driven the price back to the $87,000 area.
4. Macroeconomic Factors
- GDP Data: Today, December 23, important economic data is being released in the U.S. (such as Gross Domestic Product). Investors tend to sell risky assets (like crypto) before these announcements to avoid volatility.
- Year-End Effect: Historically, December tends to have sharp movements because large funds adjust their portfolios for annual reports and tax payments.
- BTC is leading the decline with a -2.90%, serving as a thermometer for the market.
- ZEC is among the most affected, indicating that privacy coins or those with lower capitalization suffer more when the market gets nervous.
- RESOLV is one of the few exceptions in the green, possibly due to specific project news or being used as a temporary refuge.
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