Crypto Market Takes Another Dive
On Monday, the cryptocurrency market faced another significant downturn, with Bitcoin and Ethereum experiencing steep declines that wiped out billions in value. Traders, already on edge, were particularly unsettled by this latest wave of volatility.
Bitcoin dropped as much as 6% early in the day, falling below $86,000 before it managed to recover slightly to around $86,788.
Meanwhile, Ethereum’s situation worsened, with its price sinking more than 7% to roughly $2,800 at one point.
Other cryptocurrencies, like Solana and Dogecoin, fared poorly as well, both seeing declines of more than 8%, amplifying the significant sell-off that has characterized November.
The downturn comes just as the overall crypto market was starting to stabilize after a rough few weeks. This turmoil began following the loss of $19 billion in leveraged investments in early October—only days after Bitcoin reached an all-time high exceeding $126,000.
In November alone, Bitcoin lost about 16.7% of its value, marking it as the second worst month of 2025, though it had seen some recovery last week.
Yet, the abrupt shift on Monday revealed how fragile the market sentiment remains as December approaches.
“Entering December presents a risk,” noted Sean McNulty, who leads APAC derivatives trading at FalconX.
This decline follows a tumultuous six-month cycle that saw major cryptocurrencies oscillate dramatically.
From June to October, a surge driven by institutional investments, ETF launches, and network upgrades led to wild market rallies. Bitcoin hit record highs, and Ethereum nearly doubled in value, while tokens like Solana and Dogecoin soared due to strong accumulation by investors.
However, the fourth quarter has marked a significant downturn. Bitcoin fell over 19% by December 1st, with other cryptocurrencies like Solana, Dogecoin, Cardano, Avalanche, Polygon, and Polkadot experiencing drops ranging from 15% to over 45%.
“The main concern now is the lack of inflows into Bitcoin exchange-traded funds,” McNulty added.
“We believe these structural challenges will persist this month. Bitcoin’s $80,000 mark is now a key support level to watch.”
As global market appetites decline, worries have seeped into major trading desks. Asian stock markets, having just seen their first weekly gain in two months, also felt the pressure.
In Japan, stocks declined while the yen strengthened after indications from Bank of Japan Governor Kazuo Ueda hinting at potential interest rate increases. This change could disrupt profitable yen carry trades, impacting all risk assets, including cryptocurrencies.
Beyond the immediate factors influencing the market, leverage remains a critical warning sign.
Ben Emmons, founder and CIO of FedWatch Advisors, remarked that investors are still “nervous” after the massive sell-off in October.
“There is a lot of leverage in Bitcoin,” he stated, indicating that if prices don’t rise from these lows, more liquidations are likely.
Emmons mentioned leverage levels reaching up to 200x on certain exchanges, where even minor fluctuations could lead to severe liquidations.
He also highlighted that the cryptocurrency landscape tends to amplify instability.
“This market is mostly driven by retail investors, which is concerning,” he noted, emphasizing that the retail reaction often differs significantly from that of institutional players. The decentralized and opaque nature of many exchanges complicates risk assessment.
“As influence in this space grows, it’s an essential consideration for the future,” he concluded.
