Bitcoin News Today: Bitcoin Tumbles on Tax-Loss Selling, Crypto Stocks Hit Multi-Month Lows

Bitcoin slid below $90,000 on Monday as investors sold assets to realize tax losses before year-end, pushing crypto stocks to multi-month lows. The selloff intensified following a week of heavy outflows from spot Bitcoin and Ethereum ETFs, while XRP and Solana-linked products bucked the trend with fresh inflows. Analysts said the move reflected a broader flight to quality as volatility and regulatory uncertainty weighed on sentiment.

MARA Holdings, one of the largest corporate Bitcoin holders, fell nearly 38% year-to-date, adding to a wave of declines in crypto-related equities.

Bitcoin's price dropped 4.4% over the past 12 months, even as major firms continued to build significant crypto treasuries through debt and equity raises. Corporate holdings of Bitcoin, Solana, and Ethereum reached record levels in 2025, led by companies like Strategy and Forward Industries.

Investors are increasingly turning to diversification strategies to manage crypto's inherent volatility. ETFs covering XRP and Solana have seen strong inflows in recent weeks, while Bitcoin and Ethereum ETFs recorded heavy redemptions amid broader market uncertainty. The shift highlights a growing preference for assets with more immediate use cases and institutional backing.

Why the Standoff Happened

Tax-loss selling drove much of the recent activity in crypto markets as investors looked to offset gains ahead of year-end. Bitcoin ETFs saw $497 million in net outflows during the week of December 12–19, while Ethereum ETFs lost $643 million in the same period according to market data. In contrast, XRP and Solana ETFs recorded inflows, signaling a shift toward altcoins with clearer utility and adoption drivers.

The sell-off also came amid lingering concerns over regulatory clarity in the U.S. Delays in the passage of the CLARITY Act, a bill aiming to provide a regulatory framework for crypto assets, have added to investor uncertainty. Meanwhile, the broader macroeconomic environment, including volatility in the Japanese yen and a general risk-off market, intensified the downward pressure on Bitcoin and Ethereum.

How Markets Reacted

Bitcoin's decline was mirrored by steep drops in crypto stocks. MARA Holdings, which holds over 53,000 BTC, saw its shares fall sharply as investors rotated out of riskier positions. The company had raised $748 million through a stock sale earlier in the year, but its exposure to Bitcoin and the crypto market has left it vulnerable to the current selloff.

Meanwhile, Solana and XRP ETFs have outperformed as investors sought exposure to networks with strong institutional adoption. Solana, for instance, saw a major inflow following the Breakpoint 2025 conference, where Coinbase announced native DEX trading and Galaxy and Circle made institutional moves. Ripple, the company behind XRP, also added to the positive momentum by celebrating one year of its RLUSD stablecoin and announcing a new partnership with AMINA Bank.

Risks to the Outlook

Despite the recent divergence in ETF flows, analysts caution that the crypto market remains highly volatile and subject to sharp reversals. While institutional adoption is growing, the sector still faces challenges including regulatory uncertainty and macroeconomic headwinds. The recent Bybit hack, which saw $1.4 billion stolen in a supply-chain attack, underscored the evolving threat landscape and the need for continued cybersecurity improvements.

Moreover, the risk of panic selling remains high as crypto investors prepare for year-end portfolio adjustments. While dollar-cost averaging and rebalancing can help mitigate some of the volatility, many retail investors continue to treat crypto as a speculative asset rather than a core holding. This mindset could amplify swings in the market as emotions drive trading behavior.

What This Means for Investors

For institutional investors, the selloff highlights the importance of strategic positioning in a maturing crypto market. As more companies adopt crypto as a core treasury asset, the focus is shifting from speculative trading to long-term value creation. Firms like BitMine Immersion Technologies and Forward Industries are using innovative financing methods to build large Ethereum and Solana holdings, signaling a more disciplined approach to crypto investing.

For retail investors, the recent market action underscores the need for careful portfolio management. Financial advisors suggest keeping crypto allocations below 5% of a diversified portfolio and using ETFs to gain exposure to a range of digital assets. As the crypto ETF landscape expands, investors will have more tools at their disposal to manage risk and capture opportunities across the sector.