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Tuesday began on a weak note as selling pressure plunged the crypto market down by 2% as the sentiment slipped into FEAR territory. Bitcoin (BTC), the flagship crypto, erased most of yesterday’s gains and slid below $88,000, pulling major altcoins like ETH, XRP, and Solana lower along with the broader market.
ETH, XRP, SOL Follow Bitcoin Price Pull Back
The weakness in Bitcoin quickly spilled over into major altcoins. Ethereum, the second-largest cryptocurrency, dropped around 2.3%, trading near $2,973. While XRP and Solana (SOL) also saw a decline of 2% to 3% drop, reflecting broad-based risk-off sentiment rather than token-specific news.
Other large-cap altcoins, including BNB, Cardano, and Avalanche, also traded lower, showing that today’s move is largely market-wide.
Why the Crypto Market Is Under Pressure?
Several factors appear to be weighing on prices this morning. First, year-end trading is thin, so even small sell orders are causing sharp price moves. This was seen yesterday when Bitcoin briefly jumped above $90,000 before quickly falling back below $87,000.
At the same time, institutional demand is slowing. Spot Bitcoin ETFs saw outflows on nearly 70% of trading days in December, while Ethereum also faced steady outflows. However, XRP and Solana ETFs continue to see inflows, offering limited support.
Adding to the caution, investors are waiting for today’s FOMC meeting, looking for signals on inflation and possible rate cuts in early 2026.
Precious Metals Outshine Digital Assets
While crypto struggled, precious metals posted strong gains. Silver jumped to a record $83 per ounce due to supply shortages in China, Dubai, and Australia, pushing its total market value to about $4.3 trillion
Gold also made headlines, briefly hitting a fresh all-time high of $4,552 before pulling back nearly 5%, erasing part of its recent gains.
Meanwhile, copper extended its December rally, rising as much as 8.4% this month to trade near $5.6, supported by strong industrial demand expectations.