Bitcoin and the broader cryptocurrency market witnessed a notable decline on 1 December as fresh selling pressure emerged. Bitcoin dropped 4.3%, falling below $88,000 in early Asian trading, while Ether declined 6%, slipping under $2,900, according to the reports. Data shows that the 24-hour fall contributed to a 30-day decline of 19.85%, worsened by leveraged liquidations and macroeconomic concerns. Market capitalisation now stands at 2.94 trillion, with 24-hour trading volumes at 116.18 billion. Rising concerns that the Bank of Japan may increase interest rates, coupled with Japanese bond yields hitting 15-year highs, added to selloffs across Asian markets. Crypto leverage continued to unwind, highlighted by $16 million in Bitcoin long liquidations within 24 hours, following October’s $19 billion leveraged wipeout after Bitcoin’s peak at $126,251. As of the latest update, Bitcoin is down 4.63% at 86,440.40, with market cap at $1.72 trillion and trading volume up 40.69% to $52.4 billion. Breaking a crucial support level intensified selling pressure toward the $87,000 Fibonacci region, raising concerns of a potential test of October’s low at $80,659.
At 8:55 AM, Ethereum was down 5.07% at $2,830.06 with market cap at $341.57 billion, while trading volumes rose 44.81% to $18.02 billion. The US Dollar-linked altcoin remained at $1 with minimal movement, market cap at $184.65 billion and volume up 48.43% to $82.19 billion. XRP traded at $2.05, dropping 6.55%, with market cap at $123.94 billion and volumes up 53.2% to $3.15 billion. Binance Coin, in fifth position, fell 4.71% to $831.89 with market cap at $114.58 billion and volumes rising 43.79% to $1.91 billion. Market attention also shifted to updates regarding fuel prices, financial institutions, loan interest rates, and broader crypto market outlook. Traders told that they expect deeper declines. Sean McNulty said, “It’s a risk-off start to December,” noting weak inflows to Bitcoin funds and a lack of buyers willing to absorb dips.
Riya Sehgal highlighted that Bitcoin’s fall below $87,000—paired with a 38% surge in trading volumes—signaled panic liquidations, eliminating $300 million in leveraged longs. She added that breaking key technical support shifts Bitcoin’s short-term outlook downward with further retests likely if selling continues, though it resembles a leverage flush rather than a fundamental breakdown. After excess leverage clears, Bitcoin may attempt to reclaim the $90,000–$92,000 range. Near-term influences include the U.S. Federal Reserve’s rate decision, Donald Trump’s upcoming choice for Fed Chair (expected to cut rates), and Asian market performance following significant weekly gains. Harish Vatnani noted that macro data, including U.S. jobless claims at 1.96 million and a weaker labor market, added pressure. He identified resistance at 93,500 and 100,000, with support at 85,000 and 80,000. WazirX stated Bitcoin is at a crucial macro juncture where a weakening dollar boosts liquidity and improves conditions for sustained demand.
WazirX added that nations focusing on alternative value stores—due to currency instability—create an environment supportive of Bitcoin accumulation during uncertainty, making BTC function increasingly as a cross-asset hedge against global policy divergence. Akshat Siddhant shared a positive view, noting Bitcoin ETFs logged their first net inflow week since October, hinting at returning institutional interest. He said improving liquidity and market depth support an optimistic outlook, with 85,000 as critical support and 92,400 as immediate resistance. Sources believes Bitcoin has absorbed substantial long liquidations, and maintaining the $86,000–$87,000 range could enable a push toward $89,000–$90,000. WazirX concluded that current dynamics create a moderately bullish near-term outlook with high volatility but improving structural demand. Strong 24-hour trading activity reflects high liquidity and active participation, though increased activity with slight price drops signals cautious sentiment, leaving the market appearing stable yet cautious.