At the center of today’s move is risk aversion. Investors are reducing exposure to volatile assets as equity markets weaken. The Nasdaq fell more than 1.8%, and crypto followed closely. Data shows the total crypto market cap now has a correlation of nearly 0.9 with U.S. tech stocks. That relationship is amplifying losses during equity selloffs.
Total crypto market capitalization dropped by roughly $72 billion to about $2.88 trillion. Bitcoin slipped 2% on the day, hovering near critical support at $86,000 and trading around $86,065, signaling weak momentum amid steady spot selling and thin liquidity conditions.
Altcoins underperformed Bitcoin, posting deeper losses across the board. Ethereum fell more than 3% to around $2,836, while Solana declined 3.23% to near $123. Smaller and higher-risk tokens were hit hardest, with Pump.fun sliding roughly 14%, reflecting broader weakness in memecoins and speculative segments of the market.
The decline was driven largely by rising correlation between crypto and equities. The Nasdaq Composite dropped 1.8% to 22,693 on December 17 as selling pressure hit major tech stocks such as Nvidia and Oracle. At the same time, Bitcoin failed to reclaim key resistance between $87,000 and $90,000, prompting profit-taking after recent gains. Regulatory developments, including ongoing U.S. SEC efforts toward clearer crypto rules, remained in the background and did not directly trigger the move.
From a technical perspective, Bitcoin’s immediate support sits in the $85,800–$86,000 zone, a psychological level that has recently attracted buyers. A clean break below this area could open downside toward $82,000–$84,000, followed by deeper support near $78,000–$80,000 where historical demand clusters sit. Momentum indicators such as RSI are nearing oversold territory, raising the chance of short-term bounces, but failure to hold support could expose a larger slide toward the $75,000 region.
Pump.fun’s PUMP token plunged about 14% during December 17–18, 2025, as broader altcoin weakness and a sharp crypto market cap drop triggered risk-off selling. PUMP traded near $0.002, far below its September peak near $0.81, with daily losses exceeding 7%. Heavy volume spikes signaled panic selling, erasing recent weekly gains as memecoins led the downturn.Pump.fun revenue reportedly fell to $27 million in November after the market crash, hurting sentiment. Technically, momentum remains bearish, with short-term downside targets near $0.0015–$0.0016, while extreme fear conditions highlight ongoing fragility across memecoins.
Bitcoin remains relatively resilient but lacks strong buying interest. Prices are hovering near a critical support zone, leaving traders cautious. Altcoins, which tend to move more aggressively during risk-off phases, are seeing heavier selling. Pump.fun’s PUMP token has emerged as the worst performer among major names, posting double-digit losses.
Regulatory and industry developments are also shaping sentiment. New SEC guidance on crypto custody has added compliance clarity but increased near-term uncertainty for some market participants. Meanwhile, stablecoin competition is intensifying as issuers move to expand supply and partnerships.
Together, weak equity sentiment, regulatory recalibration, and fragile technical levels explain why crypto prices are down today. The next market move will likely depend on whether key support levels hold.
Why did the crypto market cap fall as the Nasdaq selloff deepened?
The total cryptocurrency market capitalization declined by roughly $72 billion in the last 24 hours. It now stands near $2.88 trillion. The drop reflects growing sensitivity to macroeconomic and equity market trends.
Crypto’s correlation with the Nasdaq Composite has climbed to about 0.89. This means losses in technology stocks are quickly spilling over into digital assets. Continued weakness in U.S. equities has reduced risk appetite across markets.
Despite the decline, the market is holding above an important technical level near $2.87 trillion. This zone is acting as short-term support. If it fails, analysts warn of a potential slide toward $2.80 trillionwhich could trigger further liquidations.
A recovery would require improved equity performance and renewed demand for risk assets. Reclaiming the $2.93 trillion level would signal stabilization and reopen the path toward $3.00 trillion.
Bitcoin is trading around $86,356hovering just above the $86,361 support level. Price action remains tight, reflecting indecision among traders. Momentum indicators point to limited buying interest at current levels.
If selling pressure increases, Bitcoin could test the next support near $84,698. A move lower would erase recent gains and strengthen short-term bearish trends. Traders are closely watching this level for signs of defense.
A recovery is still possible but depends on a shift in sentiment. A successful bounce could push Bitcoin toward the $90,401 resistance. Reclaiming that level would improve confidence and signal renewed demand.
For now, Bitcoin remains closely tied to broader market conditions and equity performance.
Why is Pump.fun leading altcoin losses today?
Pump.fun’s PUMP token recorded the steepest decline among major altcoins, falling nearly 14% in the past 24 hours. The token is trading near $0.002017, below the key resistance level of $0.002123.
Selling pressure remains elevated as traders reduce exposure to higher-risk assets. Weak sentiment and limited buying interest continue to weigh on price action.
If market weakness persists, PUMP could test support near $0.001917. A break below that level may accelerate losses toward $0.001711, increasing volatility and reinforcing bearish momentum.
A recovery would require broader market stabilization. Reclaiming $0.002123 as support could open the way toward the $0.002428 resistance.
How are regulation and stablecoin moves adding to market uncertainty?
Beyond price action, regulatory and industry developments are shaping sentiment. The U.S. Securities and Exchange Commission issued new guidance for broker-dealers on crypto asset custody, emphasizing customer protection rules. The guidance also covers tokenized equity and debt securities.
The move signals increased regulatory focus under SEC Chair Paul Atkins. While it provides clarity, it also raises short-term compliance considerations for market participants.
Separately, World Liberty Financial proposed allocating 5% of its WLFI token treasury to expand the supply of its USD1 stablecoin. The plan aims to boost adoption through centralized and decentralized finance partnerships.
Together, these factors add complexity to an already cautious market as investors balance long-term growth prospects against near-term regulatory and macroeconomic risks.
FAQs:
Q: Why did the crypto market fall sharply today despite Bitcoin holding support?A: The crypto market dropped mainly due to a sharp selloff in U.S. technology stocks. The total market cap fell about $72 billion to $2.88 trillion, reflecting a 0.89 correlation with the Nasdaq. While Bitcoin held near $86,361 support, weak equity sentiment and reduced risk appetite limited buying activity.
Q: What key levels should investors watch next for Bitcoin and the broader crypto market?
A: Bitcoin’s immediate support sits near $86,361, with downside risk toward $84,698 if selling intensifies. For the broader market, $2.87 trillion remains critical support, while $2.93 trillion is the key recovery level. A sustained move above $2.93 trillion could reopen the path toward $3.00 trillion.