Crypto Markets Extend Losses Amid Broad Risk-Off Sentiment
Crypto indices slumped through the week, mirroring weakness in traditional risk assets. The S&P 500 and Nasdaq 100 both declined over 1%, with Gold emerging as the sole outlier. Digital assets failed to capitalize on year-end momentum, leaving traders questioning where the floor might lie.
Exchange tokens and buyback leaders showed relative resilience, while the AI sector cratered 26%. TAO led the downturn, erasing its October gains. Majors like BTC, ETH, and SOL bled alongside smaller altcoins, though the latter suffered more pronounced losses.
The market appears to be waiting for two catalysts: ETF inflows to stabilize large caps, and protocol buybacks to establish support levels. Neither materialized meaningfully this week. 'Risk assets are searching for a fundamental floor,' observed one trader, 'but it’s proving elusive.'
