Why is Crypto Down Today? – December 1, 2025

The cryptocurrency market has experienced a significant downturn today, with a market capitalization decrease of 5.2%, nearing the $3 trillion mark. A vast majority of top cryptocurrencies have seen declines in value, creating a wave of liquidations and cautious sentiment among investors.

Key Takeaways

The overall cryptocurrency market capitalization is currently at $3.01 trillion, down 5.2%.
96 out of the top 100 cryptocurrencies have decreased in value over the past 24 hours.
Bitcoin (BTC) and Ethereum (ETH) recorded declines of 5.3% and 6%, respectively.
Despite the downturn, experts believe a potential rally could follow this correction.
Investors are closely monitoring macroeconomic indicators and upcoming regulatory developments.

Why Is Crypto Down Today

Current Market Overview

Today, the cryptocurrency market has taken a downturn, with the total market capitalization falling by 5.2% to approximately $3.01 trillion. In the last 24 hours, 96 of the top 100 cryptocurrencies have reported losses, and the total trading volume in the crypto market stands at around $135 billion.

Winners and Losers in Crypto

As of this moment, 8 out of the top 10 cryptocurrencies by market capitalization have seen their prices decline.

Bitcoin (BTC) decreased by 5.3% from yesterday, trading at $86,153.
Ethereum (ETH) dropped 6%, currently priced at $2,823—this represents the smallest change within the top 10 coins.
The steepest decline belongs to Dogecoin (DOGE), which fell 8.2%, now at $0.1368.
Solana (SOL) followed, decreasing 7.2% to $126.
Tron (TRX) recorded the smallest drop at 1.2%, trading at $0.2766.

Overall, in the top 100 cryptocurrencies, 96 have experienced declines—12 of which faced double-digit percentage falls. For example, Zcash (ZEC) tumbled 21.8% to a price of $359, and Ethena (ENA) decreased by 17.7%, landing at $0.2386.

On a positive note, MemeCore (M) rose 10.2% to $1.4, and Rain (RAIN) increased by 2.9% to $0.00712.

Data from Coinglass reveals about $608 million in liquidations within the past 24 hours, predominantly from long positions, which accounted for over $535 million, while short positions saw about $73 million in liquidations. Bitcoin and Ethereum led these liquidations with approximately $185 million and $154 million, respectively.

Investors are now focusing on macroeconomic signals, particularly upcoming U.S. economic data and speeches from the Federal Reserve, as they analyze whether this drop represents a short-term correction or a trend shift.

Potential Resumption of BTC Rally

According to John Glover, Chief Investment Officer at Ledn, we are currently experiencing a Wave IV correction. He believes this correction often concludes around the 23.6% or 38.2% Fibonacci levels. Glover suggests that if this theory holds true, we may have already completed Wave IV and could be poised to continue upward.

However, he noted a Rule of Alternation indicates that if Wave II presented a straightforward A-B-C correction, Wave IV may be more intricate. "Thus far, what we’ve observed in this correction has been rapid and simplistic in nature," he remarked.

Glover anticipates experiencing a period of volatile trading without clear direction over the next few months. He suggests the low might settle between $71,000 and $80,000, after which a rally could resume by late 2026 or early 2027, targeting between $145,000 and $160,000, depending on where Wave IV stabilizes.

Ledn Insights

Dom Harz, co-founder of BOB, also expressed optimism despite the recent volatility in BTC and the overall market. He stated, "2025 won’t just be remembered for price fluctuations but for regulatory progress, institutional involvement, and technology advances that merge traditional finance (TradFi) and decentralized finance (DeFi)."

Harz concluded, "In the last downturn, we witnessed significant innovations within projects and DeFi protocols that contributed substantially to the subsequent recovery.”

Key Levels and Events to Monitor

As of Monday morning, Bitcoin is priced at $86,153. Earlier today, it experienced a sharp drop, from an intraday high of $91,904 to a low of $85,694.

Over the past week, BTC has seen a slight decline of 0.6%, fluctuating between $85,788 and $92,346. It has also experienced a 21.5% decrease over the month and a 31.7% drop from its all-time high of $126,080 recorded in October.

If the current downward trend continues, BTC could approach $81,030, risking falling below $80,000 for the first time in eight months. Conversely, surpassing $98,279 could lead to targets of $103,574 and $108,753.

BTC Trading Overview

Currently, Ethereum is trading at $2,823, having experienced a sharp decline from a high of $3,050 to a low of $2,809. Over the past week, ETH has moved between $2,796 and $3,072, maintaining a relatively stable position. It is down 42.9% from its August all-time high of $4,946.

A close above $3,108 could indicate a recovery, leading to potential increases to $3,666 and eventually $4,200. However, a fall below $3,000 might push it below $2,800 and toward a critical support level at $2,632.

Crypto analytics platform Santiment indicated that the low yields on stablecoins suggest that the market is not overheated, possibly positioning ETH for a short-term rebound.

Market sentiment has remained consistent since Friday, with the crypto fear and greed index stabilizing at 20, indicating a sentiment of fear. Participants in the market are taking a cautious approach, anticipating the arrival of additional macroeconomic signals.

Crypto Market Sentiment

The U.S. markets were closed on Thanksgiving Thursday, with a shorter trading session on Friday. On November 28, U.S. Bitcoin spot exchange-traded funds (ETFs) saw inflows of $71.37 million, increasing the total net inflow to $57.71 billion. Four out of twelve Bitcoin ETFs saw positive inflows, while one experienced outflows. Ark&21Shares led with positive flows totaling $88.04 million, followed by Fidelity at $77.45 million. Conversely, BlackRock faced outflows of $113.72 million.

BTC ETF Insights

Additionally, U.S. Ethereum ETFs recorded a fifth consecutive day of positive flows, adding $76.55 million on Friday, raising the total net inflow to $12.94 billion. Two out of nine funds saw inflows, with BlackRock dominating the majority at $68.27 million, followed by Grayscale with $8.28 million.

ETH ETF Performance

On a different note, Grayscale is anticipated to launch the first U.S. spot ETF associated with Chainlink (LINK) as early as this week, according to Nate Geraci, co-founder of ETF Institute. Bloomberg Intelligence analyst Eric Balchunas speculated that this could debut on December 2, based on internal listings data. He also highlighted that more than 100 new digitally-asset-linked ETFs may be hitting the U.S. market over the following six months, starting with this week’s Chainlink ETF.

Quick FAQ

The cryptocurrency market has undergone a decline in the last 24 hours, coinciding with a shortened session in the U.S. stock market on Black Friday. By the close on November 28, the S&P 500 increased by 0.54%, while the Nasdaq-100 rose 0.78%, and the Dow Jones Industrial Average gained 0.61%.

Investors are eagerly awaiting macroeconomic signals, including U.S. data and Federal Reserve commentary, which could clarify whether this downward trend is a temporary dip or indicative of a longer slide. New economic data releases are expected this week; however, due to a government shutdown delay, this information may be outdated, suggesting that comments from the Federal Reserve may hold more relevance.