Headline: Crypto market sheds nearly $100B in 19 hours as year‑end profit‑taking overruns Santa rally hopes After a brief rebound on Monday, Dec. 29, 2025, the cryptocurrency market reversed sharply — wiping out almost $100 billion in market value in roughly 19 hours. Global crypto market capitalization climbed back above $3 trillion early Monday (peaking around $3.02 trillion) but slid to about $2.93 trillion as traders booked gains and prices tumbled. What happened - The pullback looks driven primarily by aggressive year‑end profit‑taking rather than a traditional “Santa Claus” rally, analysts told CNBC. Traders who had built overly bullish positions into year‑end appear to be locking in gains. - The drop represents a roughly $90–100 billion decline from the recent peak, recorded within a single trading day (about 19 hours). Context and recent volatility - The sector has seen substantial outflows in recent months. October was particularly brutal — more than $19 billion of leveraged positions were liquidated on Oct. 10–11, the largest single liquidation event on record — and the market is still digesting those losses heading into 2026. - The broader markets also reflect risk‑off behavior: gold and silver saw inflows and gold experienced a correction on Dec. 29, suggesting capital is rotating into perceived safe havens. Why macro matters - The pullback has a clear macroeconomic overlay. After a rate move in October, investors did not expect further Federal Reserve easing in 2025; a 25 basis‑point cut in December failed to convince many that the economic backdrop had meaningfully improved. - That uncertainty has traders positioning for a more uncertain 2026, where many strategists expect short‑term, tactical trades to outperform simple buy‑and‑hold approaches. What to watch next - Near term, elevated profit‑taking and a flight to safer assets like precious metals suggest cryptocurrencies and other risk assets may struggle to mount a sustained rally in the coming weeks. - A broader market rebound will likely depend on clearer signs of macro stabilization or renewed risk appetite. Without that, volatility and tactical trading are the likeliest themes into early 2026. Bottom line Traders wiped out nearly $100 billion of crypto market value in under a day as year‑end profit‑taking, lingering October liquidations and macro uncertainty combined to sap momentum. Whether the market can regroup after the New Year will hinge on shifts in macro data and investor risk appetite, but for now the environment favors shorter‑term strategies over long, buy‑and‑hold bets. Read more AI-generated news on: undefined/news