Bitcoin and Memecoins Face Year-End Profit-Taking Pressure

Bitcoin has faced profit-taking pressure as the year comes to a close, trading near $89,600, reflecting a cautious market sentiment. According to CoinDesk, this decline follows a broader pullback in risk assets, with fears over technology valuations and mixed signals from the Federal Reserve contributing to the trend.

Most major cryptocurrencies, including Ethereum and various memecoins like Dogecoin, also experienced losses as traders reassess their positions amid declining trading volumes. Dogecoin, for instance, fell below a critical support level of $0.1407, seeing intensified selling pressure, which is a clear indication of traders reducing their risk exposure.

Additionally, analysts from CoinDesk highlighted that the overall market remains characterized by negative sentiment, with BTC and ETH acting as hedging proxies for other tokens. As liquidity thins and trading volumes drop significantly, the near-term outlook suggests continued softness in prices as traders prepare for the new year, potentially re-evaluating their strategies early in 2026.