Following a brief period of calm during the Christmas holidays, the global financial markets did not witness the anticipated "Santa Rally." Instead, a deep correction characterized by cross-asset resonance and macro-driven volatility has taken hold.
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Macro Synchronicity: Daytime Illusions and Evening Chills
Over the past two weeks, the crypto market has exhibited a distinct pattern of "daytime gains and nighttime losses." Closely synchronized with U.S. stock futures, the market often sees modest recoveries during Asian trading hours as futures show signs of stability. However, once the U.S. session opens in the evening, crypto assets struggle to withstand the broader sell-off in traditional markets.
Yesterday, the first trading day after the Christmas break, market sentiment was notably "cautious and hungover." Dragged down by a retreat in high-valuation tech stocks, the three major U.S. indices declined across the board. This risk-off sentiment pierced through industry barriers, directly weighing on crypto performance.
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A "Stampede" in Safe Havens: From Bullion to Digital Gold
The carnage was not limited to crypto; even traditional safe havens were not spared. A rare "stampede-style retreat" occurred in the precious metals market yesterday:
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Silver: After breaching the $80 mark, silver collapsed intraday, plunging over 8% to briefly dip below $71.
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Gold: Spot gold prices fell by approximately 4.5%, marking its largest single-day drop in the second half of the year, approaching the $4,300 support level.
Given the high correlation between gold and Bitcoin in the "liquidity hedge" narrative, the collapse in precious metals effectively dismantled the final line of defense for Bitcoin bulls.
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The 90k Battle: Psychological Defenses Crumble Again
Bitcoin’s price action yesterday delivered a heartbreaking "Inverted V" reversal for investors:
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Failed Breakout: As bulls attempted to capitalize on a rebound to reclaim and hold the critical $90,000 psychological ceiling, selling pressure surged.
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Deep Retest: Within hours, the price plummeted from its 90k peak to roughly $86,800.
This sharp retracement has pushed the Crypto Fear & Greed Index deeper into the "Extreme Fear" zone. The total crypto market cap shrank by 0.36%, but more concerning is the simultaneous decline in altcoin market cap and trading volume share, indicating that capital is either retreating to major assets or exiting the market entirely.
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The Logic Behind the Selling Pressure
Industry analysts point to several factors driving the current market weakness:
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Thin Holiday Liquidity: The lack of trading volume during the holiday season means even minor sell orders can trigger outsized price swings.
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ETF Momentum Stalling: In late December, inflows into Bitcoin Spot ETFs slowed significantly, leaving the market without fresh capital to absorb profit-taking at higher levels.
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Technical Resistance: Repeated failures to hold 90k have formed a "triple top" pattern on shorter timeframes, prompting technical traders to adopt a defensive stance.
Summary
The crypto market is currently in a volatile "bottom-finding" phase. The synchronized retreat with U.S. stocks, gold, and silver suggests this is not an isolated industry collapse, but a broader asset rebalancing following a contraction in global risk appetite. With the $90,000 level lost, the $84,000–$85,000 zone will be the most critical line of defense for the market heading into early 2026.