Key Takeaways

• Bitcoin’s price fell sharply below $87,000, driven by widespread selling and heightened investor anxiety, as reported in the crypto market press review for 16 December 2025.
• Bitcoin’s decline intensified downside sentiment across the broader crypto market.
• Ethereum dropped under $3,000, with traders closely watching for the December network upgrade.
• The fear and greed index signaled “extreme fear” as the crypto market lost $100 billion in value.
• Major corporate buyers continued to add billions in Bitcoin to their treasuries, reflecting sustained institutional interest.
• Volatility remained elevated as both retail and institutional participants reassessed risk in the current climate.

Introduction

On 16 December 2025, Bitcoin’s sharp drop below $87,000 led a broad selloff across the crypto market, heightening investor anxiety and triggering extreme readings on the fear and greed index. The crypto market press review highlights ongoing institutional Bitcoin accumulation as participants navigate increased volatility and shifting sentiment in digital assets.

Top Story

Bitcoin fell below the $87,000 threshold overnight, reaching its lowest price since early November amid a broad crypto market downturn. The flagship cryptocurrency dropped over 6.5% in 24 hours, resulting in approximately $100 billion being erased from the overall cryptocurrency sector.

Market volatility increased substantially. Bitcoin’s 30-day volatility index reached levels last seen during the March 2025 market correction. Trading volumes across major exchanges surged by nearly 40%, as both panic selling and opportunistic buying contributed to turbulent market conditions.

The Crypto Fear & Greed Index fell into “extreme fear” territory, registering 22 out of 100, down from 55 just one week ago. This marked sentiment shift suggests that retail investors may be capitulating while institutions assess new entry points, according to on-chain analytics.

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Ethereum Market Update

Ethereum underperformed Bitcoin during the current downturn, losing nearly 9% compared to Bitcoin’s 6.5% decline. The second-largest cryptocurrency now trades around $6,200, a level not seen since late October.

Network metrics for Ethereum show mixed signals. Gas fees dropped by 15% as overall activity decreased in response to market uncertainty. Staking participation has remained stable at 22% of the total ETH supply, indicating that long-term holders are maintaining confidence in Ethereum’s fundamentals.

Developers have confirmed the final specifications for Ethereum’s upcoming Shanghai upgrade, scheduled for 22 December 2025. This update will introduce significant scalability improvements and reduce gas costs for certain contract interactions.

The Ethereum Foundation intensified testing on public testnets. The final deployment completed yesterday yielded promising results. The upgrade arrives at a crucial time, as Ethereum faces increased competition from alternative Layer 1 protocols amid current market weakness.

Market Sentiment

Institutional investors reversed their recent stance, with digital asset investment products recording $258 million in outflows last week, according to CoinShares data. This outflow is the first after 12 weeks of continuous inflows, indicating a more cautious approach from major players.

BlackRock’s Bitcoin ETF registered its first weekly outflow of $98 million since its launch in February. Grayscale reported similar trends in its crypto trusts, though executives stated this represents “typical market cycling” rather than a fundamental change in institutional strategy.

Recent declines in artificial intelligence stocks have shown a high correlation with cryptocurrency market pressure. Major AI companies experienced an average 12% decline over the past two weeks. Some analysts noted that both sectors have attracted similar investor demographics, resulting in increased correlation during periods of market stress.

Martha Reynolds, chief market strategist at Pinnacle Research, stated that a “risk-off” sentiment is driving behavior across speculative technology investments, with both AI and crypto markets responding to similar forces for several months.

Market Wrap

The broader cryptocurrency market declined by 7.2% in the past 24 hours. Large-cap cryptocurrencies fared better than mid and small-cap alternatives, with the CoinDesk Market Index reflecting widespread sector pressure.

DeFi tokens were especially impacted, averaging an 11.3% drop as lending protocols faced increased liquidations. In contrast, gaming and metaverse tokens showed relative resilience, with losses limited to around 5% as user engagement remained steady despite significant Bitcoin weakness.

A few exceptions stood out. Monero rose 3.2%, and infrastructure provider Chainlink gained 1.5%, both outperforming the negative broader market sentiment. Stablecoins saw a 60% increase in trading volumes as traders sought safety from volatility.

What to Watch

• Ethereum Shanghai upgrade implementation is confirmed for 22 December 2025.
• Bitcoin monthly options expiry scheduled for 19 December 2025, with significant open interest at the $90,000 strike price.
• Federal Reserve interest rate decision and press conference set for 17 December 2025.
• Coinbase Q4 earnings call scheduled for 20 December 2025.
• Binance regulatory compliance update webinar announced for 18 December 2025.

Conclusion

Bitcoin’s fall below $87,000 highlights growing caution in the crypto market, as both sentiment and trading activity reflect increased uncertainty. The upcoming Ethereum Shanghai upgrade and other scheduled events will be key tests for market stability in the near term.

What to watch: monitor the Ethereum upgrade on 22 December, Bitcoin options expiry on 19 December, and the Federal Reserve decision on 17 December for possible shifts in market direction.