Bitcoin rose 0.78% to $86,573, briefly crossing $87,000. Despite this, the fear and greed index remains at 16, showing investors are still very nervous.
Ethereum, XRP, Solana, BNB, and Dogecoin logged modest gains, while Cardano fell 0.71% due to uneven strength across the market.
While the prices were improving, there were heavy outflows from Bitcoin and Ethereum ETFs, indicating that large investors continue to reduce risk.
Crypto prices today recovered cautiously after recent sell-offs. Bitcoin led the recovery while investor sentiment stayed deeply cautious. The broader digital asset market exhibited modest gains across many sectors, though fear levels remain tight in the grip of traders. Here’s what happened in the crypto market today based on CoinMarketCap data.
Bitcoin price was up 0.78% in the last 24 hours, changing hands at $86,573.96. The coin had a market capitalization of $1.73 trillion and a trading volume reaching $39.58 billion. With 19.96 million BTC in circulation, the leading cryptocurrency continues to set the tone for broader market movements.
According to CoinSwitch Markets Desk, “BTC bounced about 3% after Monday’s sharp selloff as heavy forced selling eased and traders stepped in near the $85,000–$86,000 support zone. In the short term, the rebound looks more like a relief bounce than a full trend reversal. BTC needs stronger spot buying to sustain upside. Technically, resistance sits around $88,000–$88,500, while support lies near $87,000. Holding above support could keep prices stable, but failure to reclaim $88,500 may open the door to another pullback.”
Ethereum price was up by 0.30% at $2,929.93, continuing to range-trade around the $2,900 level. ETH has maintained a market capitalization of $353.63 billion with $20.35 billion in 24-hour trading volume across its 120.69 million circulating supply.
Among other major altcoins tracking crypto prices today:
XRP jumped 2.25% to $ 1.91. Solana price rose 1.26% to $127.76, BNB gained 0.39% to trade at $857.75. Meanwhile, Dogecoin rises by 1.47% at $0.1306. Cardano slipped 0.71% to $0.3793, bucking the broader uptrend. TRON was up 0.28% to 0.2795 TRX.
The gains in crypto prices today are mainly from SocialFi, PayFi, RWA and Layer 1 sectors with notable moves in tokens like TON, TEL, OM, and SUI. This leaves only AI and NFT tokens behind the broader market recovery. Stablecoins continued to be on an even keel, with Tether at $ 0.9999 and USD Coin at $ 1 peg.
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While crypto prices today flashed green across most major tokens, analysts are raising red flags about the sustainability of any rally. Research firm 10x Research warned that widespread optimism around a bullish 2026 is increasingly disconnected from current market data. Thus, suggesting caution when it comes to any short-term bounces.
Adding to market uncertainty, on-chain analyst Murphy also noted that Bitcoin's holdings concentration, currently set at 11%, is above average but below the 13% threshold, which usually indicates high volatility. This, therefore, presents limited near-term volatility, and focus shifts to upcoming macro catalysts, including U.S. CPI data and the Bank of Japan's interest rate decision.
Despite the recent positive price action, the crypto fear and greed index remains stuck at 16 firmly in ‘extreme fear’ territory. It indicated still-fragile investor confidence and that any recovery may face headwinds.
Crypto prices tell one story, but investment flows tell another. Bitcoin ETFs actually had net outflows of $277.2 million on December 16. However, the exits for Ethereum ETFs were even larger at $224.2 million, according to data from Farside Investors.
Meanwhile, XRP spot ETFs defied the trend as net inflows reached $8.54 million on December 17. Bitwise's XRP ETF took the lion's share with $6.26 million in daily inflows, while Franklin's XRP ETF came in second with $2.09 million. Total net assets across the XRP spot ETF complex have risen to $1.16 billion, indicating a definite rotation within the digital asset ETF market.
The sharp outflows from Bitcoin and Ethereum products against positive price action suggests institutional investors remain cautious about the near-term outlook.
On the regulatory front, HashKey Holdings officially listed on the main board of the Hong Kong Stock Exchange today under the ticker 3887.HK and became the first digital asset company in Hong Kong to complete an IPO.
Backed by nine cornerstone investors, including UBS Asset Management Singapore, Fidelity, and CDH Investments, the listing reflects the fast-growing institutional interest in regulated crypto infrastructure. Chairman and CEO Dr. Xiao Feng views the IPO as a new starting point for the company, with HashKey to focus on enhancing security, custody, on-chain execution, and compliance capabilities.
Also Read: Bitcoin News Today: BTC Could Face Its Fourth Annual Decline as Crypto Market Volatility Increases
Crypto prices today are reflecting cautious optimism. However, fear continues to be the sentiment dominating investor psychology. Heavy ETF outflows persist, something analysts have been quick to point out, oblivious to the disconnect between bullish narratives and underlying data. The best a trader can do is to get an idea of direction from upcoming macro events.
1. Why did crypto prices rise today despite fear in the market?
Crypto prices increased primarily because of short-term buying after recent sell-offs. Bitcoin led the rebound, which often lifts the broader market. However, extreme fear levels show investors remain cautious and are not fully convinced the recovery will last.
2. What does the crypto fear and greed index at 16 mean?
A reading of 16 signals ‘extreme fear.’ This means many investors are worried about further losses. Markets in this zone can bounce, but confidence is weak, and sudden drops remain possible.
3. Why are Bitcoin and Ethereum ETFs experiencing large outflows?
ETF outflows indicate that institutional investors are taking money off the table. Despite price increases, many large players seem uncertain about the near-term direction due to macro risks and market volatility.
4. Which altcoins did best and worst today?
XRP fared the best among major coins, up over 2%, while Solana and Dogecoin posted gains. Only Cardano bucked the trend, falling 0.71% in a generally higher market.
5. What's next for crypto investors?
Investors will closely watch the upcoming macro events, like U.S. CPI and central bank decisions. Such factors might impact crypto prices since fear is still the driving sentiment in the market.
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