- Nearly $100 billion was erased from the crypto market within about 19 hours on Dec. 29, 2025.
- The global crypto market cap fell from $3.0 trillion to roughly $2.93 trillion.
- Traders cited year-end profit taking and recent macro uncertainty, including Federal Reserve rate moves.
- October outflows and large liquidations earlier in the year left the market vulnerable to further drops.
On Dec. 29, 2025, the crypto market experienced a rapid sell-off that removed nearly $100 billion in value over roughly 19 hours, cutting the global market cap from $3.0 trillion to about $2.93 trillion. This move followed a brief daytime recovery and occurred amid broader year-end profit taking. See a market chart here. Image
Market participants pointed to increased profit taking rather than a typical year-end "Santa Claus" rally, as noted in a business market report. That report linked the crypto weakness to the same selling pressure affecting equity and Gold prices.
A social media comment summarized the mood: "🔥PROFIT-TAKING DECEMBER, NOT A SANTA RALLY", and added that "Markets are seeing ‘profit taking’ after overly bullish year-end positioning." The post also said, "2026 is likely to be more unpredictable, favoring short-term, tactical trades over buy-and-hold strategies." Coin Bureau tweet
The crypto sector has faced heavy outflows in recent months. In October, over $19 billion in leveraged positions were liquidated during Oct. 10–11, the largest single liquidation event on record. Liquidation (forced closure of borrowed positions) and leveraged positions (trades using borrowed funds) left price support thin.
Macro factors also influenced trading. Investors had not expected further interest rate relief from the Federal Reserve in 2025 after an earlier rate dip; December produced an additional 25 basis point rate cut. A basis point (bp) is 0.01% (one-hundredth of a percent).
Inflows into safe-haven metals such as gold and silver signaled a more risk-averse stance among investors, which may weigh on risky assets in the near term. The market’s near-term path will depend on broader economic developments and investor positioning.
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