Bitcoin falls to $87,000, market fear sentiment continues

2025-12-24 01:24:41

Source: DecenterKorea Original Title: Bitcoin in the $87,000 range···Investor sentiment remains in 'extreme fear' [Decenter Market Report] Original Link: https://www.decenter.kr/NewsView/2H1URWWRF5/GZ03

Global Market Trends

Bitcoin experienced a decline on the eve of the year's end, with the overall performance of the cryptocurrency market being weak. According to data from a global cryptocurrency data platform, BTC fell by 0.99% to $87,568.77. Ethereum (ETH) dropped by 1.05% to $2,963.47, Binance Coin (BNB) decreased by 1.56% to $843.36, XRP fell by 0.96% to $1.881, and Solana (SOL) dropped by 1.11% to $124.04.

Domestic Market Performance

The domestic market shows an upward trend. BTC increased by 0.61% to 130.4 million KRW, ETH rose by 1.47% to 4.417 million KRW, and XRP decreased by 0.32% to 2,804 KRW.

Cryptocurrency-related stocks plummet

Cryptocurrency-related stocks have seen a sharp decline. Digital asset companies have performed poorly, with some enterprises dropping over 15%, and major leading companies have generally also fallen.

Market Analysis

Short-term factors: Market analysis suggests that year-end tax-loss trading ( Tax-loss selling ) has exacerbated short-term volatility. Investors are selling off loss-making assets to reduce their tax burden, which, combined with the declining liquidity phase, amplifies the selling pressure. Digital asset hedge funds indicate that as the year-end approaches, selling pressure in the low liquidity environment is expanding.

Optimistic Outlook: Some institutions believe that volatility may ease in the new year. Historical data shows that sharp price fluctuations occurring during the holiday season typically exhibit a mean-reversion trend, and volatility may significantly decrease after liquidity returns in January.

Medium to Long-term View: The market leans towards a cautious attitude. Industry insiders indicate that in the absence of clear upward catalysts, the short-term consolidation and adjustment may continue. Currently, it will take a considerable amount of time for the cryptocurrency market's total market capitalization, which is about $2.6 trillion, to recover to the $4 trillion level.

Investment Sentiment Indicator

The cryptocurrency investment sentiment remains in a state of “extreme fear.” The Fear and Greed Index is at 24 points, down 1 point from the previous day, (. The closer the index is to 0, the more the investment sentiment shrinks, while the closer it is to 100, the more the market is overheated.

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BTC-0,69%

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