The cryptocurrency market experienced a sharp decline after Christmas, with bearish sentiment surrounding Bitcoin dragging the total market capitalisation down by 4%. Retail investors scaled back their positions on Boxing Day, triggering sell-offs across major digital assets.
Bitcoin (BTC) fell below the $96,000 mark, trading around $95,400 late Thursday. Ethereum (ETH), the second-largest cryptocurrency, was priced at $3,316. Both assets lost approximately 4% and 5%, respectively, within 24 hours due to intensified sell pressures.
According to data from leading exchanges, the global cryptocurrency market capitalisation stood at $3.32 trillion on Thursday, marking a 3.65% decline over the day.
Trading activity surged despite the overall decline in valuations. The total crypto market volume reached $126.46 billion in the past 24 hours, reflecting a 10.16% increase.
Decentralised Finance (DeFi) accounted for $9.2 billion, representing 7.27% of the total trading volume. Meanwhile, stablecoins dominated the market, with their volume settling at $117.35 billion, accounting for 92.80% of total trading activity during the same period.
Major altcoins, including Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Ripple (XRP), and Binance Coin (BNB), remained volatile. Fluctuating prices limited any potential market recovery, keeping the broader crypto space under selling pressure.
The retreat in Bitcoin and Ethereum prices, along with broader market volatility, has dampened investor confidence heading into the new year. Analysts suggest that sustained sell-offs could delay a return to upward momentum, especially as retail traders dominate trading volumes in the holiday season.
