Why Is Crypto Declining Today? Analysis of Bitcoin, Ethereum, XRP, and Dogecoin Amid Death Cross Signals
December 17, 2025 | By Damian Chmiel
Cryptocurrency markets are experiencing downward pressure today, with Bitcoin consolidating near $87,700 and Ethereum, XRP, and Dogecoin showing modest losses. This downturn coincides with increased regulatory uncertainty following the United States Senate Banking Committee’s decision to delay the much-anticipated crypto market structure bill until early 2026. Combined with broader market factors such as liquidity constraints and risk-off sentiment, these developments are contributing to bearish momentum in the crypto space.
Regulatory Delays and Market Sentiment
The Senate Banking Committee’s postponement of hearings on cryptocurrency legislation—a bill that has been awaited throughout 2025—has sown uncertainty among investors. The bill, which aims to establish clearer rules for the crypto market, will now be pushed into next year due to unresolved issues including financial stability, market integrity, and ethical concerns.
“The delay in finalizing a bipartisan agreement and the crowded legislative agenda going into 2026, including government funding and midterm elections, are pushing crypto legislation further into the future,” said Michał Stajniak, an analyst at XTB. XTB, known primarily for CFD brokerage, is also exploring spot cryptocurrency trading, highlighting industry anticipation for regulatory clarity.
Technical Signals Point to Bearish Momentum
Technical analysis across major cryptocurrencies reveals death cross patterns—where a short-term moving average crosses below a long-term moving average—signaling potential further declines.
Bitcoin (BTC):
Bitcoin’s price is marginally down by 0.2%, holding within a sideways consolidation range between roughly $85,600 and $94,000. Resistance is concentrated near $92,000–$94,000, supported by the 50-day exponential moving average and a 100% Fibonacci retracement level. Despite this consolidation, the death cross formed about a month ago points to a possible decline toward the year’s lows around $74,000. Analysts anticipate a continuation of sideways movement before a significant drop, possibly triggering a washout necessary for a subsequent medium-term rebound.
Ethereum (ETH):
Ethereum mirrors Bitcoin’s chart structure with its own death cross signaling bearishness. Trading around $2,950, ETH has declined modestly over four consecutive sessions. Resistance lies between $3,350–$3,435, while support is found near the $2,700 level, corresponding to Fibonacci retracement levels and recent lows. The downtrend may persist, with potential targets near $2,200 (June 2025 lows) and even extending to $1,400, a low recorded in April.
XRP (Ripple):
XRP has seen its sharpest drop in a month, trading around $1.92, close to support levels established in November and June of 2025. The price range has been relatively confined between $2.20 and $2.30 on the upside, reinforced by the 50-day moving average. A break below local support could expose XRP to further declines toward $1.61 (April lows) and possibly as low as $1.25, a high-volatility flash crash level observed in late 2024. Dogecoin (DOGE):
Dogecoin, the prototypical meme coin, exhibits high volatility and has broken its support zone around $0.14–$0.15. Sitting at approximately $0.13, DOGE hovers just above the April 7, 2025 lows. A breach of this support level could see Dogecoin slide below $0.10, aiming toward flash crash lows near $0.09 recorded in September 2024. This price action underscores Dogecoin’s sensitivity to liquidity fluctuations and market sentiment shifts.
Broader Market Context and Investor Sentiment
The overarching market environment is characterized by global risk-off sentiment and fading liquidity, which traditionally drag down speculative assets like cryptocurrencies. Liquidity—defined by how quickly an asset can be converted to cash without impacting its price—has diminished as investors await clarity on central bank policies and regulatory frameworks.
Interestingly, despite multiple positive developments such as potential regulatory accommodations and ETF progress, market participants remain frustrated. Pratik Kala, portfolio manager at Apollo Crypto, noted, “Most are surprised by the lack of follow-through despite so many positive catalysts.” This indecision is reflected in the fact that approximately 75% of the top 100 cryptocurrencies are trading below key moving averages as the year-end approaches, suggesting limited momentum to push prices higher in the short term.
What’s Next for Crypto?
In the immediate future, analysts expect continued consolidation with downward bias until a decisive breakout occurs. Bitcoin is poised to test support levels near $74,000, while altcoins like Ethereum and XRP may revisit their previous lows, prolonging the current bearish phase.
The crypto community and investors will be watching closely as 2026 unfolds, particularly the resumption of Senate hearings and any legislative progress that might alleviate regulatory uncertainties. Until then, liquidity constraints and cautious market sentiment are likely to keep prices subdued.
Summary: Regulatory delays, death cross technical indicators, and weakening liquidity are driving today’s crypto market downturn. Bitcoin, Ethereum, XRP, and Dogecoin all reflect bearish signals with potential drops to yearly lows. Market participants remain cautious amid uncertainty and approaching legislative and political events in 2026. —
For more detailed charts and technical analysis, visit TradingView and stay tuned for updates on cryptocurrency market developments.