U.S. stocks hit new highs, but the crypto market struggles to hide signs of fatigue: Bitcoin comes under pressure and retreats, as risk-averse sentiment among investors intensifies.

Despite the continued strength and new highs in global stock markets, the weakness in the cryptocurrency market persists. On Wednesday, Bitcoin and several mainstream digital assets declined collectively, with the total cryptocurrency market cap dropping about 1.4% to $2.97 trillion, once again falling below the critical $3 trillion level, indicating insufficient market rebound momentum.

Bitcoin price hovered around $86,900, failing to break the $90,000 psychological barrier for the third consecutive day. Ethereum declined approximately 1.5%, trading around $2,927. Meanwhile, Solana, XRP, and Dogecoin experienced more significant declines, with SOL dropping nearly 3% in a single day, reflecting clear pressure on high-beta assets. This trend suggests that, against a backdrop of cautious macroeconomic conditions, investors’ willingness to allocate to high-risk crypto assets is decreasing.

In stark contrast to the crypto market, global stock market sentiment remains optimistic. Supported by strong US economic data, traders continue to raise corporate earnings expectations. The MSCI All Country World Index has risen for the fifth consecutive trading day, with a year-to-date increase of 21%. Asian stock markets edged higher, with technology stocks performing relatively well, and the US S&P 500 index previously hitting a new all-time high. However, approaching the Christmas holiday, overall trading volume is low, and European markets opened with a relatively cautious sentiment.

FxPro Chief Market Analyst Alex Kuptsikevich pointed out that repeated failures of the crypto market to rebound have resulted in a seller-dominated pattern. Large investors are more inclined to cautiously reduce their holdings in low-liquidity environments rather than cause sharp volatility driven by retail traders, making the market characteristics more akin to the early stages of a bear market. He also emphasized that the combination of rising gold, a weakening dollar, and Bitcoin being under pressure signals that funds are re-evaluating risk appetite.

Fund flow data further supports this assessment. According to CoinShares, last week, global crypto investment products experienced a net outflow of $952 million, with Bitcoin funds outflowing $460 million and Ethereum funds outflowing $555 million. Only XRP and Solana-related funds saw slight inflows, indicating ongoing structural divergence. Overall, Bitcoin price trends, Ethereum market performance, and capital outflows are becoming key long-tail keywords of current concern in the crypto market.