Why did Bitcoin, Ethereum, XRP, and ADA all decline today? Year-end liquidity exhaustion combined with selling pressure

In the past 24 hours, the cryptocurrency market has been under pressure as Bitcoin, Ethereum, Ripple (XRP), and Cardano (ADA) prices collectively declined, with the total market capitalization falling by approximately 2.66%. Among them, Bitcoin hovered around $87,300, Ethereum dropped below the $3,000 mark, and XRP and ADA weakened in tandem. The end-of-year light trading, insufficient market liquidity, combined with profit-taking and emotional selling, have become significant factors behind this round of correction.

From a macro perspective, the lack of new positive catalysts, declining investor risk appetite, and liquidation pressure in the derivatives market have collectively amplified price volatility. Additionally, regulatory uncertainties and holiday effects have led to cautious capital behavior, causing the crypto market to generally come under pressure in the final stage of the year.

Regarding Bitcoin, BTC fell approximately 2.63% to $87,317 amid seven consecutive days of capital outflows from spot ETFs. Meanwhile, open interest in CME Bitcoin futures dropped to an 18-month low, indicating decreased short-term institutional participation. The Fear and Greed Index retreated to 2.9, reflecting a market sentiment leaning towards fear. However, Japanese listed company Metaplanet continued to increase its holdings by about $451 million, acquiring 4,279 BTC, bringing its total holdings to 35,102 BTC, demonstrating that some institutions are still positioning during the consolidation phase.

Ethereum’s price declined about 2.96% over the past 24 hours, breaking below $3,000, with market focus on support in the $2,800–$2,700 range. At the same time, Ethereum spot ETF experienced a net outflow of approximately $9.6 million, indicating weakening institutional demand. Notably, despite retail selling, American investor Tom Lee is reportedly still adding about $130 million worth of ETH, reflecting optimism about Ethereum’s long-term value.

For XRP and ADA, bearish momentum has also intensified. XRP fell below $1.88, with weekly and monthly declines widening; on-chain data shows over 40 million XRP recently flowed into exchanges, increasing potential selling pressure. ADA dropped about 6.2% to around $0.351; if it loses the Fibonacci support at $0.35, the risk of further decline to $0.30 increases.

Overall, Bitcoin, Ethereum, XRP, and ADA still face multiple pressures at year-end, including ETF capital outflows, weak sentiment, and insufficient liquidity. However, if market liquidity recovers and sentiment improves in January, there remains the potential for a phased rebound in major cryptocurrencies.