Why Is The Crypto Market Down Today?

The crypto market is pulling back after a brief rebound yesterday, tracking broader weakness in global risk assets. Since yesterday’s high, total crypto market capitalization (TOTAL) has fallen by over 3%, currently holding at $3.04 trillion.

Bitcoin is down around 2% over the past 24 hours, holding up better than most of the market. Ethereum has underperformed, dropping over 5%, pressured by fresh ETF outflows.

Losses are broad across large caps, with several top-100 tokens extending recent declines. Ethena (ENA) has been one of the leading underperformers amid the biggies, losing over 6% in a day.

In the news today:-

• Ripple Moves Closer to Federal Banking Status: Ripple received conditional approval from the US Office of the Comptroller of the Currency to pursue a national trust bank charter. The move strengthens Ripple’s regulated payments and custody infrastructure, supporting long-term institutional adoption, though it is unlikely to drive short-term XRP price action.
• Bitcoin Draws Fresh Criticism From Traditional Finance: Vanguard’s global head of quantitative equity reportedly referred to Bitcoin as a “digital Labubu,” highlighting continued skepticism from legacy finance. The comment underscores the widening gap between traditional market views and Bitcoin’s growing institutional presence.
• Ethereum ETFs Saw Outflows For the Second Day: Ethereum spot ETFs saw net outflows of $42.37 million on December 11 and another $19.41 million on December 12. The consecutive withdrawals have added pressure to ETH, helping explain its underperformance versus Bitcoin.

Crypto Market Cap Slips, Key Support Now in Focus

The total crypto market cap (TOTAL) has pulled back after failing to hold recent highs. From yesterday’s peak, the market has dropped a little over 3% from yesterday’s peak, erasing roughly $96 billion in value. It now trades near $3.04 trillion, stabilizing but still fragile.

This move has tracked weakness in global equities. Over the past 24 hours, the Nasdaq has declined by approximately 1.5%, while the S&P 500 has fallen by about 1%. That risk-off tone has spilled into crypto, limiting upside follow-through after the recent bounce.

From a structural view, the $3.01 trillion level is now critical. This area has acted as short-term support multiple times. As long as the total market cap holds above $3.01 trillion, another rebound attempt remains possible.

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If that level breaks, the next downside check comes near $2.95 trillion. That zone lines up with the prior consolidation base. A deeper drop toward $2.73 trillion would only come into play if selling accelerates sharply.

On the upside, the market needs to reclaim $3.17 trillion to restore momentum. This level has capped recent rebounds and marks the line between sideways recovery and a broader continuation move.

A clean push above it would reopen the path toward the $3.24 trillion region. Bitcoin’s relative stability is helping limit downside risk for now. 

Bitcoin Holds Firm as a Standout Support Level Emerges

Bitcoin price is down about 2% over the past 24 hours, but it is holding up better than most risk assets. While equities and large-cap altcoins weakened, Bitcoin stayed relatively steady, helping slow the broader market slide.

The key reason is clear on the chart. Since December 7, Bitcoin has repeatedly defended the $90,000 level. Every dip toward that zone has been met with buying, and no daily close below it has held.

That behavior signals quiet strength, even as sentiment remains cautious.

If conditions improve, Bitcoin needs roughly a 4.75% move to test resistance near $94,600. This level has capped recent rallies. A clean daily close above it would shift the structure higher and open the door to further upside.

On the downside, $90,000 remains the line that defines the trend. A daily close below it would weaken the setup and expose $88,100, with $83,800 as the next deeper support. As long as $90,000 holds, Bitcoin remains the stabilizing force in a shaky market.

Ethena (ENA) Leads Losses as Bearish Pressure Builds

Ethena is one of today’s weakest large-cap performers, down over 6% in the past 24 hours and extending its monthly drop beyond 20%. The decline stands out even within a weak market.

The ENA price is trading near $0.248, pressing against a fragile support zone. A daily close below $0.245 would open the door to $0.216, implying another 12% downside from current levels.

Selling pressure is also increasing beneath the surface. Bull-Bear Power, which compares buying strength against selling strength within each candle, continues to print deeper negative readings. That signals sellers are gradually gaining control as price drifts lower.

To invalidate the current weakness, Ethena (ENA) would need to reclaim $0.283. Without that move, rallies are likely to remain corrective, especially if broader market sentiment stays risk-off.