- Bitcoin failed to hold an overnight rally and fell below $87,000 as U.S. markets opened
- Precious metals surged to new record highs, drawing capital away from crypto
- Crypto stocks and miners extended losses, reinforcing weak market sentiment
Bitcoin once again failed to hold an overnight bounce as selling pressure returned with the opening of U.S. markets. After briefly pushing above $89,000 while U.S. traders were offline, BTC quickly reversed course and fell back below $87,000 as American equities resumed trading following the Christmas holiday.
Familiar US Session Sell-Off Returns
This pattern has become increasingly familiar for crypto markets in recent weeks. Overnight strength has repeatedly faded once U.S. trading begins, frustrating bulls hoping for sustained momentum. Bitcoin is now down roughly 1.6% over the past 24 hours, while Ethereum slipped a similar amount. Major altcoins followed lower, with DOGE down more than 4% and XRP losing around 3%, leading broader sector weakness.
Metals Rally Diverts Capital Away From Crypto
While crypto struggled, precious metals continued an explosive rally. Gold, silver, copper, platinum, and palladium all posted fresh record highs on Friday. Palladium and platinum surged more than 10%, silver and copper gained around 5%, and gold climbed to roughly $4,573 per ounce.
Rising geopolitical tensions may be adding fuel to the metals move, including recent U.S. military action against Islamic State targets in Nigeria and increased pressure on Venezuela through blocked oil shipments. These dynamics appear to be pulling capital toward hard assets traditionally viewed as inflation and instability hedges, potentially at crypto’s expense.
Crypto Stocks and Miners Feel the Pain
Crypto-related equities were also under pressure. Coinbase fell about 2%, outperforming peers, while Gemini dropped 6% and Galaxy Digital slid 3.5%. Bitcoin miners saw even sharper losses, with several names down more than 5% despite recent pivots toward AI infrastructure. Hut 8 led declines, falling roughly 7.5% in early trading.
Meanwhile, U.S. equity indices remained relatively flat, underscoring the divergence between traditional markets, metals, and crypto.
As long as metals continue attracting global capital and U.S. trading hours remain a consistent source of selling pressure, crypto markets may struggle to regain confidence. Here is why watching cross-asset flows and U.S. session behavior remains critical heading into year-end.
