Ethereum Faces Year-End Selloff as Quant Programs and Tax-Loss Selling Dominate December Trading

In a year-end update, Tom Lee, chair of BitMine, notes that December liquidity typically wanes as institutions trim risk. He argues that end-of-year trading is dominated by quantitative programs and bots, with tax-related stop-loss selling adding to volatility. The observation reflects a common, calendar-driven market pattern in the final trading days, where liquidity conditions and risk-off moves shape price action.

COINOTAG coverage also notes a fresh liquidity signal from CoinShares: last week’s outflow reached $446 million, lifting total outflows since October 10 to about $3.2 billion. The data indicate cautious sentiment and a slow, uneven recovery for digital asset exposure, underscoring the need for disciplined risk management and selective participation by institutional buyers.