Bitcoin and Ethereum may be facing headwinds as both leading cryptocurrencies continued their downward trend, with a sharp decline recorded on Monday as the recent sell-off resumed.
On December 1, 2025, the cryptocurrency market experienced a significant downturn. Bitcoin (BTC) fell nearly 5–6%, dropping below $86,000, marking one of its largest daily losses in recent weeks. Ethereum (ETH) mirrored the decline, trading around $2,840 after a similar percentage drop. These losses contributed to a broader decline across major cryptocurrencies, leading to a substantial drop in overall market capitalization.
In Asia, sentiment was further affected after the People’s Bank of China issued a statement on Saturday warning against illegal activities involving digital currencies. The announcement pressured Hong Kong-listed digital asset-related companies, which retreated during Monday’s trading session.
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Analysts and media reports attributed the downturn to renewed “risk-off” sentiment among investors. Global economic uncertainty—including concerns over rising interest rates and macroeconomic instability—prompted many to reduce exposure to high-volatility assets such as cryptocurrencies.
The sharp price declines also triggered widespread liquidations of leveraged positions on several cryptocurrency exchanges. Reports estimate that hundreds of millions of dollars in long positions were automatically closed as prices plunged.
Institutional activity also played a role in the sell-off. Several crypto-linked funds and ETFs reportedly saw outflows, contributing to weaker market liquidity and amplifying the downward pressure.
Given the fragmented nature of the cryptocurrency ecosystem, the exact scale of losses and liquidations varies depending on the data source, token, and exchange. For example, one report estimated approximately US$500–600 million in liquidations, while another cited US$400 million within a single hour—highlighting differences in methodology and scope. (Business Today)
The declines in BTC, ETH, and other major cryptocurrencies on December 1 underscore the inherent volatility of digital assets. While all reported price movements are measurable and documented, the precise magnitude of losses and total market-cap contraction differs slightly between sources.
The sell-off illustrates how macroeconomic conditions, investor sentiment, leveraged positions, and institutional flows can combine to drive significant market downturns. The events of December 1 provide a clear snapshot of the high-risk, high-volatility nature of the cryptocurrency sector while remaining rooted in reported data.
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Bitcoin, Ethereum, and other major cryptocurrencies experienced pronounced declines due to a mix of economic uncertainty, regulatory warnings, and shifting investor behavior. While exact figures vary across sources, the episode highlights the high-risk environment in which digital assets operate. It also emphasizes the need for investors to exercise caution, diversify their exposure, and understand the speculative nature of the market.
Despite the uncertainty, the events reinforce the importance of robust risk management, transparency, and regulatory oversight in the rapidly evolving financial landscape. They also serve as a reminder that sudden market swings are not exclusive to cryptocurrencies; any asset class exposed to high volatility and speculative trading can experience abrupt declines. As digital assets continue to integrate with mainstream finance, stakeholders must navigate these risks thoughtfully while recognizing that even widely adopted assets can experience sharp and sudden fluctuations.