Bitcoin and Major Cryptos Experience Significant Year-End Sell-Off

Bitcoin, Ether, and XRP have experienced significant sell-offs as the year-end approaches, reflecting caution in the broader market. According to CoinDesk, Bitcoin fell below $86,000, down more than 4% in the past week, while Ether slipped to around $2,930.

The overall cryptocurrency market capitalization has decreased to approximately $3.06 trillion, signaling a shift from an upward trend to a consolidation phase with downside risks. Cointelegraph reports that $2.78 billion in Bitcoin was sold by large holders, while retail and mid-sized wallets accumulated $474 million in buy-side volume.

This shows a liquidity imbalance where smaller traders see lower prices as buying opportunities, but whales are reducing exposure. Sentiment indicators, such as the crypto fear and greed index, have dropped to 16, indicating extreme caution.

Analysts project that Bitcoin may retest quarterly lows around $80,600 if this selling pressure continues. Macro factors such as the Federal Reserve's cautious guidance and tightening liquidity are contributing to the market's volatility.

Leverage in the crypto market surged, leading to $527 million in liquidations in just 24 hours, amplifying fears among traders. As the market navigates this uncertainty, expectations for Bitcoin's year-end price remain pessimistic, with many predicting it will finish below $100,000, according to prediction markets on Kalshi.