Bitcoin and major tokens fell on Wednesday as the total cryptocurrency 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 maintain a break above $90,000 for the third time in as many days, while ether fell 1.5% to around $2,927. XRP, solana and dogecoin posted larger losses, with solana down almost 3% and XRP down almost 2%.
The pullback came even as some stock indexes rose to new records, reinforcing the sense that capital is leaning toward safety rather than high beta bets.
Global stocks hit another record high as traders leaned toward a reading of strong U.S. growth that bolstered the case for firmer corporate profits.
The MSCI All Country World Index rose for the fifth consecutive session on Wednesday, taking its year-to-date gain to 21%. Asian stocks rose 0.2%, led by technology stocks after the S&P 500 closed at a record high on Tuesday.
Volumes were thin ahead of the Christmas holidays and futures pointed to a subdued opening in Europe.
Alex Kuptsikevich, chief market analyst at FxPro, said the market is showing signs of greater seller control, and that repeated bounces are not materializing.
“The market was unable to repeat the strong rebound from the local bottom, indicating increased pressure from sellers,” Kuptsikevich said in an email. He added that as cryptocurrencies stay away from recent highs, larger players are increasingly behaving as if the market is entering a bearish phase, preferring measured selling rather than sharp moves driven by retail trading.
Kuptsikevich also highlighted the broader risk context. Bitcoin sold off again after briefly topping $90,000 earlier this week, despite a decisive rally in gold and other precious metals and a weakening dollar.
That combination, he said, suggests that investors are reassessing risk appetite and that risk aversion may spread further.
“In the coming weeks, we can expect an even steeper decline in cryptocurrencies, as well as the 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 the exceptions, with inflows of $63 million and $49 million, respectively.
