Bitcoin, Ethereum, and XRP synchronize rebound, the crypto market once again tests the $3 trillion threshold

On Wednesday, the cryptocurrency market continued its correction trend, with the overall market capitalization falling below the $3 trillion mark for the third time in a month, as the market began testing lower support levels. The decline was mainly concentrated in mainstream assets such as Bitcoin, Ethereum, and XRP, indicating signs of institutional fund rebalancing rather than retail panic selling.

Market data shows that Bitcoin dropped approximately 1.5%, to $86,580, retracing some of its gains from the previous trading day. Ethereum retreated from an overnight high near $2,980 to around $2,930. Ripple (XRP) faced resistance at the $1.90 level and failed to continue its previous recovery rally. Since these assets all have active ETF products, the market generally believes that the price weakness more reflects changes in institutional sentiment.

FxPro’s chief market analyst pointed out that as the year-end approaches, investors are reassessing risk exposure, making mainstream crypto assets gradually become “sentiment pressure points” for institutional rebalancing. In contrast to the crypto market, major Asian stock indices such as the Hang Seng Index, Shanghai Composite, KOSPI, and Indonesia Index edged higher, with market expectations that China may introduce new fiscal stimulus measures after weak economic data.

On the macro front, the US dollar index rebounded from a recent low to above 98, exerting some pressure on risk assets denominated in dollars. However, gold prices remain steady above $4,300 per ounce, indicating that demand for safe-haven assets still exists.

As prices decline, market sentiment in crypto has noticeably worsened. The Fear & Greed Index has fallen to 11, indicating deep fear. From a technical perspective, Bitcoin’s next key support level is around $81,000; if broken, there is a possibility of retesting the historical range of $60,000 to $70,000.

Liquidity shortages have further amplified volatility. FlowDesk data shows that market depth has decreased and leverage levels are relatively low heading into the end of the year, making prices more prone to sharp fluctuations in low-volume environments. On-chain data presents mixed signals: on one hand, short-term upward momentum has weakened, but on the other hand, long-term holdings by enterprises and institutions continue to grow. MicroStrategy recently purchased over 10,000 Bitcoin again, indicating that selective accumulation has not stopped during the market correction.