New York Coin Market/Closing: Bitcoin drops below $86,000 and Ethereum down 4%... AI shock and year-end selling pressure

Source: BlockMedia Original Title: [New York Coin Market/Closing] Bitcoin Falls Below $86,000 and Ethereum Down 4%… AI Shock and Year-End Sell-Off, Is There No Bottom? Original Link: https://www.blockmedia.co.kr/archives/1021396 The New York digital asset market continued its overall bearish trend amid the sharp decline in U.S. tech stocks and end-of-year liquidity concerns. Bitcoin experienced rapid fluctuations during the day, falling back to the low $86,000s and testing weekly lows again, while major altcoins like Ethereum and Solana also recorded double-digit weekly declines.

Market Data

According to CoinMarketCap, Bitcoin(BTC) traded around $85,861, down 1.75% from the previous day. On a weekly basis, it declined 7.48%, continuing the correction trend since last week.

Ethereum(ETH) fell 3.91% over the same period to $2,813, with a weekly drop of 17.19%. Binance Coin(BNB) plummeted 3.57%, and XRP(XRP) decreased 3.25%. Solana(SOL) declined 3.80% to $122.10, and Dogecoin(DOGE) fell 4.54% to $0.1255. Notably, Dogecoin has dropped 15.18% over the past 7 days, directly impacting investor sentiment. Cardano(ADA) also declined 21.19% weekly, recording the largest drop among top market cap assets.

The total market capitalization of digital assets is $2.89 trillion, down 2.48% from the previous day, with Bitcoin dominance at around 59.3%. The Relative Strength Index(RSI) for digital assets stands at 32.92, entering the ‘oversold’ zone, indicating potential for technical rebound but lacking immediate reversal momentum.

AI Tech Stocks Plunge and Year-End Selling Pressure

The overall market decline was linked to the weakness in tech stocks, especially the Nasdaq. AI-related stocks like Nvidia, Broadcom, and Oracle fell sharply by 3-6%, causing the Nasdaq index to drop over 1.5%. Concurrently, the cryptocurrency market also experienced a correction. In particular, news of Oracle withdrawing from a Michigan data center investment dampened expectations for the AI theme, exerting downward pressure on risk assets across the board.

Technical oversold conditions have led to some selling pressure and increased volatility. Terra Hash co-founder commented, “The Bitcoin market is close to exhaustion,” and noted, “Weak selling pressure is causing prices to fall easily.” He emphasized that maintaining support in the $80,000–$85,000 range is crucial for future trends.

One strategist explained, “Trading is currently confined within a high-volatility range, and short-term rallies are facing continuous selling pressure due to year-end portfolio adjustments and tax issues.” He projected Bitcoin to range sideways between $86,000 and $92,000 for the near term, with major options expiries at the end of December potentially shaping future directions.

Expert Outlook

Experts generally agree that downside pressure may dominate in the short term. However, some also suggest that technical rebounds could occur in the near future, based on RSI lows and the fear index approaching bottom levels.

An asset management CEO stated, “Since many assets are entering oversold territory, the price correction may be nearing its end,” but advised, “For short-term strategies, it’s better to wait until a trend recovery is confirmed before making low-buy decisions.”

The Fear & Greed IndexFear&Greed remains at 25, indicating a ‘fear’ phase, reflecting that investors are still maintaining cautious positions.