After a slight reversal on Monday, Dec. 29, 2025, the crypto market has registered another massive liquidation event. According to reports, nearly $100 billion was wiped out of the crypto market within a span of 19 hours. The global crypto market cap had reclaimed the $3 trillion mark on Monday, but has since fallen to the $2.93 trillion level. The crypto market dip comes amid a larger profit taking trend, leading to big price dips. Let’s discuss if we will see a rebound after the new years.

Crypto Market Dips Amid Larger Profit Taking

According to a CNBC report, markets are seeing increased profit taking, instead of a “Santa Claus” rally. The profit taking trend is reflected in the cryptocurrency market dip. Gold prices also experienced a correction on Monday, Dec. 29, 2025. The increased profit taking could be due to investors expecting a market correction in early 2026.

The cryptocurrency market faced substantial outflows over the last few months. October, in particular, was a bad month for the crypto sector, given that the month has been historically bullish. More than $19 billion worth of leveraged positions were liquidated from Oct. 10-Oct. 11, the most significant ever. The cryptocurrency market is still recovering from its October losses.

The cryptocurrency market’s dip was triggered by macroeconomic uncertainties. Investors did not expect the Federal Reserve to roll out another interest rate cut in 2025 after the October rate dip. Although December saw an additional 25 basis point rate cut, investors were still not convinced. The market will most likely continue its current trajectory well into 2026, unless the larger economy improves.

Also Read: UBS Updates Gold Price Forecast: Why $5,400 Is Now Possible

Increase inflows into gold and silver are further indications that investors are taking a risk-averse approach. Cryptocurrencies and other risky assets may not see any positive price movements over the coming weeks.