Major digital asset markets, led by Ethereum, Solana, and Cardano, are recording notable declines driven by widespread year-end profit-taking activity. Jeff Mei, Chief Operating Officer at BTSE, attributes this correction to investor hesitation regarding mixed macroeconomic signals, which has generated an environment of caution dragging down altcoins.
During Sunday’s session, while Bitcoin retreated towards $89,600, the impact was percentage-wise more severe in the alternative market. Ether descended to the $3,120 zone showing relative weakness, while high-cap assets like Solana, Cardano, and Dogecoin recorded losses nearing 2%. This generalized bearish behavior coincides with trading volumes that have notably reduced in recent sessions, amplifying price volatility and reinforcing a defensive tone across the entire crypto spectrum.
On the other hand, this negative trend is not an isolated event within the ecosystem but responds to macroeconomic concerns about technology valuations and corporate earnings sustainability. Jeff Mei highlights that, given the imminent fiscal year-end, traders are opting to secure liquid profits now, postponing the opening of new positions until 2026. Furthermore, investors show doubt following October’s drop and fears of a U.S. stock market that many analysts currently consider overvalued due to artificial intelligence spending.
Can Low Liquidity Exaggerate Declines For Major Altcoins?
Likewise, market depth has become an additional risk factor for tokens like SOL and ADA. Augustine Fan, head of insights at SignalPlus, warns that current thin liquidity could exacerbate downward movements in the coming weeks. According to his analysis, the sell-off is a continuation of the recent negative bias, where Bitcoin and Ether act as a hedging proxy for the rest of the lower-cap tokens. Fan suggests avoiding over-interpretation of hourly swings, although he acknowledges that overall sentiment remains deeply negative at this moment.
Finally, selling pressure on the cryptocurrencies sector is anticipated to persist until the start of the new year, with lower resistance pointing to softer prices for alternative assets. However, positive net flows in ETFs and liquidity support from central banks could offer a fundamental counterweight. Thus, although the year-end presents itself as challenging and volatile, the market could find a more constructive and stable environment once trading volumes fully normalize in early 2026.
