**Crypto Market Drops as Fear Grows and Prices Slide**

The crypto market took a hit today after a short-lived rise yesterday. Overall, the total market cap dropped by 1.5%, now sitting at $3.01 trillion. Out of the top 100 cryptocurrencies, 95 saw their prices go down in the last 24 hours. Meanwhile, trading activity remained high with a total volume of $129 billion.

All of the top 10 cryptocurrencies by market cap have dropped in value. Bitcoin (BTC), the largest crypto, fell slightly—down just 0.3%—and is currently trading around $86,722. This makes it the smallest loser among the top coins.

Among the top 100 coins, three experienced double-digit losses, showing stronger downward pressure across the market.

**Russia Reaffirms Crypto Payment Ban**

In regulatory news, Russia has reinforced its stance against using crypto for payments. Anatoly Aksakov, Chairman of the Financial Markets Committee, made it clear that crypto will not be accepted as legal money in Russia. He emphasized that digital assets can only be used for investment, and all payments must be made in rubles.

**Bitcoin’s Familiar Pattern Continues**

Fadi Aboualfa, head of research at Cooper, explained that Bitcoin is showing a familiar trend seen in past years. The pattern involves hitting all-time highs, pulling back sharply, and then finding support around the cost basis of ETF investors before starting another rally.

He noted that institutional investors are now more focused on Bitcoin as an asset within portfolios than holding individual units (satoshis). Without rebalancing, even a small 2% Bitcoin allocation can swell to over 6% in less than six months.

Based on past cycles, if Bitcoin holds near its current support around $84,000 and follows similar trends, its price could rise to between $138,000 and $148,000 within the next 180 days.

**Market Sentiment Weakens Amid Uncertainty**

Nick Forster from Derive.xyz pointed out that markets remain shaky as we head into the new year. Ongoing economic uncertainty in the U.S. and selling from long-dormant wallets are keeping prices under pressure.

Current Bitcoin positioning shows traders expecting further downside in Q1 and Q2. There’s a growing number of bets (options) suggesting BTC could fall below $85K soon. However, some traders are still hopeful for a bounce back, placing bullish bets at $100K and $120K strike levels.

Forster estimates there’s about a 30% chance Bitcoin hits $100,000 soon, while the likelihood of reaching its previous all-time high is just 10%.

**Ethereum Shows a Mixed Outlook**

Ethereum (ETH) is showing a more balanced picture compared to Bitcoin. While Bitcoin seems stuck in a bearish pattern, Ethereum’s price outlook into Q2 2025 is more neutral.

There’s currently a 45% chance ETH will reclaim $3,000 by the end of Q1 next year. There’s also a 25% chance it could rise above $4,000 during that same period.

Despite high market volatility and cautious trading behavior, investors haven’t completely given up on a potential upward move in the coming months.

**Price Action: BTC and ETH Trading Sideways**

As of Thursday morning:

– Bitcoin (BTC) is at $86,722. It started the day at $87,011, briefly jumped to an intraday high of $90,164, but then dropped to $85,373 before leveling off.

If downward pressure continues, BTC could test lower levels at $84,000 or even fall into the $82,300–$83,200 range. A steeper drop might push it below $80,000. On the upside, it would need to break above $90K to regain momentum.

– Ethereum (ETH) is currently trading at $2,834. Earlier in the day it climbed to $3,021 before dropping to $2,796 and stabilizing.

If ETH continues to fall, support may be found near $2,700 or $2,630. A bounce back could push it toward the $3,000 mark again—provided it can hold that level.

**Crypto Fear Rising Fast**

Investor sentiment continues to decline. The Crypto Fear & Greed Index dropped to 22 today from 25 yesterday, moving deeper into fear territory. Growing anxiety suggests that the market could remain weak in the short- to mid-term.

**ETF Flows Show Mixed Signals**

U.S.-based Bitcoin spot ETFs broke their outflow streak on Wednesday with $457 million in net inflows. The total net inflow now stands at about $57.7 billion.

However, Ethereum ETFs are seeing continued negative flows. December 17 marked five straight days of outflows totaling $22.43 million. The total net inflow for ETH ETFs has now fallen to $12.62 billion.

**Stocks Also Decline as AI Bubble Concerns Grow**

The crypto market drop comes alongside losses in U.S. stocks. On December 17:

– S&P 500 fell by 1.16%
– Nasdaq-100 dropped 1.93%
– Dow Jones lost 0.47%

This marks four straight sessions of decline for major U.S. indices as fears grow over a potential AI investment bubble.

Overall market conditions remain uncertain across both crypto and traditional markets. Analysts say a strong positive event or signal is needed to reverse this downward trend. Until then, caution remains high among investors and traders alike.