Why Is Crypto Down Today? – December 5, 2025

The crypto market has experienced a decline today after nearly a week of price increases. The overall cryptocurrency market capitalization has dropped by 1.1%, now resting at $3.23 trillion, with 90 of the top 100 coins seeing gains in the last 24 hours. The total trading volume across the crypto markets is currently $114 billion.

Key Takeaways

The cryptocurrency market is down 1.1% today, with a total market cap of $3.23 trillion.
Bitcoin (BTC) has fallen by 1.2%, trading at $92,227, while Ethereum (ETH) decreased only by 0.6%.
Notable increases include Tron (TRX), which rose by 2.4%, while Provenance Blockchain (HASH) surged by 18.5%.
The broader market shows signs of fragility with 25% of Bitcoin's supply currently underwater.

Why Is Crypto Down Today

Market Overview

Crypto Winners & Losers

As of now, all top 10 cryptocurrencies by market capitalization have seen price increases, with two coins experiencing double-digit rises.

Bitcoin (BTC) is down 1.2%, trading at $92,227.
Ethereum (ETH) decreased by 0.6% and is currently priced at $3,169, making it the least affected among the top ten.
XRP suffered the largest drop, down 3.9% to $2.09.
Solana (SOL) also fell by 3%, landing at $139.
The only coin that saw a price increase is Tron (TRX), which rose by 2.4% to $0.2868.

Among the top 100 coins, only 10 have gained value over the past day. Provenance Blockchain (HASH) topped the list with an 18.5% increase to $0.02584, closely followed by Zcash (ZEC), which rose 10.2% to $396. The remainder saw smaller upticks, typically below 4%.

Conversely, Hyperliquid (HYPE) and Pump.fun (PUMP) faced the most significant declines, down 5.6% to $33 and 5.4% to $0.003101, respectively.

The market shifts are attributed to a mix of labor data, actions by central banks, and volatile stock markets across Asia, Europe, and the US.

In a positive development, the major South Korean Woori Bank has begun displaying Bitcoin prices in its primary trading room in Seoul, marking the first instance of a commercial bank in the country integrating crypto price feeds into its trading space. An official commented, “As digital assets grow in significance and impact on global financial markets, monitoring them is essential to understand overall market trends.”

'Holding $96K–$106K Is Critical'

Glassnode analysts highlight that Bitcoin has stabilized above a crucial valuation point known as the True Market Mean, which is the cost basis of non-dormant coins. They explain, “This level often differentiates between a minor bearish phase and a significant bear market.”

Despite this stabilization, the overall market structure is increasingly resembling the dynamics seen in Q1 2022, with over 25% of Bitcoin supply showing losses. This situation creates a delicate balance between the risk of panic selling by buyers and the potential for sellers to exhaust themselves, forming a market bottom. The analysts emphasize the need to maintain support at $96,000–$106,000 to prevent further declines.

Additionally, Bitunix analysts noted that the US is set to release September PCE inflation data today, which will have a direct impact on the December interest rate decision. Currently, the chance of a 25-basis-point rate cut stands at 87%. Leading up to this release, market conditions have entered a phase of reduced volatility, with Bitcoin's key trading barrier focused within the range of $91,000–$95,000. Should inflation data indicate continued disinflation, the potential for a year-end rebound increases; otherwise, market fluctuations may persist.

Levels & Events to Observe

As of Friday morning, Bitcoin is priced at $92,227, having started the day at a high of $93,577 before gradually declining, and briefly touching an intraday low of $91,029. Over the past week, Bitcoin has seen a slight overall increase of nearly 1%, fluctuating between $84,553 and $93,855.

If Bitcoin continues to decline, it may return to the $90,000 formation, potentially even lower. However, if the trend turns bullish, it could rise to $96,500 and aim towards the $100,000 threshold.

Price Trends

Ethereum is currently valued at $3,169, with an intraday high of $3,217 and a brief dip to $3,076 before recovering quickly. Over the last week, ETH has outperformed Bitcoin, gaining 5% and trading within the $2,736–$3,222 range. A bullish breakout above the $3,350 resistance level may confirm a trend reversal, leading the price above $3,500 and eventually towards $4,000. Conversely, continued declines could see Ethereum pull back towards $2,900.

Following a few days of upward momentum, crypto market sentiment has turned once again towards fear, with the crypto fear and greed index currently at 25, down from 27 yesterday. Given the prevailing uncertainty among market participants, a drop into the extreme fear zone wouldn't be unexpected. Significant macroeconomic news will be essential to move the sentiment back toward neutrality in the near term.

Crypto Market Sentiment

On Thursday, December 4, the US Bitcoin spot exchange-traded funds (ETFs) experienced a second consecutive day of outflows, totaling $194.64 million; total net inflows have decreased to $57.56 billion. Of the twelve Bitcoin ETFs monitored, five reported outflows, and none saw inflows. BlackRock was largely responsible for these negative flows, with $112.96 million exiting its ETFs, followed by Fidelity, which faced $54.2 million in outflows.

ETF Outflows

In addition, the US Ethereum ETFs also reported negative flows on Thursday, amounting to $41.75 million in outflows, bringing the total net inflow to $12.95 billion. Among the nine funds, one secured inflows while three faced outflows, with BlackRock gaining $28.35 million and Grayscale losing $30.96 million.

ETH ETF Flows

Notably, Strategy, recognized as the world’s largest corporate Bitcoin holder, has allocated a $1.44 billion US dollar reserve to serve as a liquidity buffer against a prolonged downturn in the market. CryptoQuant asserts that this move indicates a strategic preparation for a potential bear market phase. Additionally, Strategy has indicated they may sell Bitcoin or Bitcoin derivatives as part of their risk-management strategy if market conditions worsen.

In another development, quantitative trading firm Jane Street has taken a stake in a company called Antithesis, which claims to enhance the Ethereum blockchain. Jane Street led the Series A funding round for Antithesis, raising a total of $105 million.

Quick FAQ

The crypto market experienced a downturn in the past 24 hours, while the US stock market had a mixed day on Thursday. By the close of trading on December 4, the S&P 500 rose by 0.11%, the Nasdaq-100 fell by 0.097%, and the Dow Jones Industrial Average dropped by 0.067%. This followed a new set of data concerning the US labor market and preceded a significant inflation report scheduled for today.

Minor dips in market values are typical, and today's decrease is not unusual. Analysts suggest that, as long as the market avoids major shocks, a rally could still occur in the coming weeks.