Bitcoin and Major Altcoins Experience Year-End Profit-Taking

Crypto markets slipped as Bitcoin approached $89,600, with traders stepping back and engaging in profit-taking. According to CoinDesk, Bitcoin fell about 0.5% on Sunday, while Ethereum edged lower to around $3,120.

Major tokens like XRP, Solana, and Dogecoin also posted losses of up to 2%. Concerns about technology valuations and mixed signals from the Federal Reserve contributed to a broader market pullback. Jeff Mei from BTSE noted that year-end positioning is likely driving current market weakness, with traders taking profits ahead of 2026.

He pointed out that Bitcoin ETF inflows remain positive and that liquidity support from the Fed could create a constructive backdrop once markets reopen. Meanwhile, FlowDesk mentioned that demand for Bitcoin faded quickly after the Fed's 25-basis-point rate cut, leading to thin liquidity and a range-bound market.

Despite the negative sentiment, Glassnode reported that digital asset treasury companies are once again buying Bitcoin, indicating that long-term holders are still accumulating despite short-term volatility.

Overall, the market remains cautious, with thin trading volumes amplifying price movements and leaving Bitcoin stuck in a broad range, according to CoinDesk.