Crypto markets slide amid concerns over tech valuations

Most major tokens traded lower on the day, with XRP, Solana and Dogecoin posting losses of upto 2%, according to market data

Crypto markets slid on Sunday as a broader pullback in risk assets extended into the final full trading week of the year, with investors remaining cautious amid concerns over technology valuations.

Bitcoin dropped nearly 0.5% to trade near $89,600, hovering just above last week’s lows, while ether edged slightly lower to around $3,120. Most major tokens traded lower on the day, with XRP, Solana and Dogecoin posting losses of upto 2%, according to market data.

The move came as U.S. equity-index futures rebounded modestly after last week’s tech-led selloff, which was triggered by renewed scrutiny over heavy artificial intelligence spending and earnings sustainability.

While futures for the S&P 500 and Nasdaq 100 rose about 0.2% in Asian morning hours Monday, risk appetite remained fragile as investors reassess whether elevated valuations in technology stocks can be justified into 2026.

That caution has spilled over into crypto markets, which have struggled to regain momentum following October’s sharp drawdown. Trading volumes have thinned noticeably in recent sessions, amplifying price moves and reinforcing a defensive tone.

Right now, investors are hesitant to invest in cryptocurrencies given October’s dip, concerns of an overvalued U.S. stock market, and mixed signals from the Fed, said Jeff Mei, chief operating officer at crypto exchange BTSE, in a Telegram message.

That being said, Bitcoin ETF inflows are still net positive and the Fed has started buying back securities in the market, adding liquidity that could flow towards stocks and crypto, he added.

Mei added that year-end positioning is likely driving the current weakness.

Given it’s the end of the year, traders are likely taking profits now and will re-evaluate if they want to initiate new crypto positions in the beginning of 2026, he said.