Overview:

• Bitcoin fell by over 5%, leading to liquidations of over $250M, its biggest wipeout in a 24-hour period this month before bouncing back by 1.39%.

• Japan's rising bond yields and weak US manufacturing data weighed on global risk assets, as crypto sentiment took a beating.

• The performance of altcoins was mixed, as Ethereum slid while BNB and Cardano saw modest recoveries.

Crypto prices today reflect a sharp downturn across global markets, while Bitcoin slipped below key support and major altcoins faced renewed selling pressure. Surging bond yields in Japan, weak US manufacturing data, and heavy liquidations have sent volatility upward, making life tough for both traders and investors. Here’s what happened in the crypto market today based on CoinMarketCap data. 

Bitcoin Price Slides Below Key Support Level

Bitcoin plunged more than 5% on December 1 trading. It fell briefly below $85,000 before recovering somewhat by 1.39% to $86,896 at press time. The world's biggest cryptocurrency now trades about 30% below its peak last month amid broader uncertainty in risk assets.

The fall of Bitcoin triggered the biggest liquidation event across the crypto market in the last 24 hours. Around $251.69 million of leveraged positions are getting wiped out, according to data from CoinGlass.

According to CoinSwitch Markets Desk,” BTC traded within the $84,000-$88,000 range, with buyers stepping in on dips. After briefly testing the $84,000-$85,000 support zone, the market absorbed the move and shifted into consolidation. A late-session push lifted BTC back above $86,000. If the price holds above $85,500, momentum could build toward $87,500-$88,000, the next resistance zone. A clean break above this level may open a move toward $89,000-$90,000. Investors can follow macro drivers closely, especially shifting Fed expectations.”

Ethereum Price and Major Altcoins Face Selling Pressure

Ethereum price fell 0.59% to trade at $2,801 with a market capitalization of $338 billion. The second-largest cryptocurrency witnessed approximately $111.31 million in liquidations through the period.

Solana price was relatively resilient, up 0.34% to reach $126.66. SOL holders accounted for approximately $19.22 million in liquidations, considerably less than the two market leaders.

XRP price was down 0.75% at $2.01, retaining its position as the fifth-largest cryptocurrency with a market cap of $121.5 billion. In the past 24 hours, trading volume for XRP reached $4.3 billion.

Top Ten Cryptocurrencies Performance

Looking at crypto prices today across the top ten assets, the picture remains mixed:

BNB climbed 1.14% to trade at $831.44, showing strength among exchange tokens. Cardano rose 1.63% to $0.3907, pacing gains among major altcoins. As expected for stablecoins, USDT and USDC remained stable near their $1.00 peg. On the other hand, Dogecoin was down 0.74% to $0.1359 while TRON (TRX) dipped 0.20% at $0.2767.

Also Read: Crypto Prices Today: Bitcoin Price Plunges 6.5% to $85,857, Solana Tanks 7%, XRP Drops 7.6%

Why is the Crypto Market Down today

Here are some reasons for mixed crypto sentiments today.

Japan's Bond Market Signals Policy Shift

The main trigger behind today's market weakness was given by Japan, where government bond yields climbed to the highest in 17 years. The yield on a 10-year Japanese government bond reached as high as 1.88%, following comments from Bank of Japan Governor Kazuo Ueda that strengthened expectations of an interest rate raise later this month.

This would be a departure from ultra-loose monetary policy and could have far-reaching consequences for global funding markets. When Japanese rates rise, it becomes more expensive for investors to borrow yen and invest in riskier assets like cryptocurrencies – a strategy known as the carry trade.

The turmoil in Japan's bond market also lifted US Treasury yields, pushing 10-year rates to around 4.08%. Generally, increased bond yields make safer investments more attractive compared to volatile assets such as crypto.

US Manufacturing Data Shows Continued Weakness

Fresh economic data from the United States added to concerns about global growth. According to the Institute for Supply Management, US manufacturing contracted for the ninth month in a row during November. The headline index fell to 48.2 from 48.7 with components such as new orders, employment, and backlogs all weakening.

While softer economic data increased expectations for a Federal Reserve rate cut in December, with markets now pricing an 86% chance of a 25-basis-point cut, the overall picture of slowing growth dampened enthusiasm for risk assets.

Crypto-Exposed Stocks Feel the Pain

The drop in price of Bitcoin created a ripple effect across crypto-related stocks. MicroStrategy, which holds the largest corporate Bitcoin position, saw its shares fall sharply. The stocks of Coinbase and Robinhood dropped by mid-single digits, while those of Bitcoin mining companies such as Marathon Digital and Riot Platforms slid between 7% and 9% as lower crypto prices squeezed their profit margins.

On-Chain Data Shows Heavy Selling Pressure

Analysis from Bitfinex shows that recent losses in bitcoin have triggered a wave of realized losses bigger than those seen at the two major market lows earlier in this cycle – in August 2024 and April 2025, suggesting the market is under stress with weaker holders giving up and selling their positions.

However, analysts point out that such heavy loss realization has often occurred near the end of corrective phases when selling pressure runs out and conditions begin to stabilize.

China Property Concerns Return

Adding to market concerns, Chinese property developer China Vanke recently surprised investors by asking for a delay on a local bond repayment. The company has asked bondholders to wait for a year before being paid back, underscoring ongoing cash flow problems in the country's troubled real estate sector.

While not directly related to crypto, weakness in China's economy often impacts global risk sentiment, which may lead investors to pare exposure to volatile assets like digital currencies.

Also Read: Bitcoin News Today: Crypto Market Slides as BTC Drops Under $90,000 on Rising Risk Aversion

Market Outlook

Crypto prices today reflect a challenging environment where multiple headwinds are coming together. This is seen with the likely end of ultra-loose policy in Japan, further economic uncertainty, and technical weakness in Bitcoin suggesting traders should be prepared for continued volatility into the near term.

FAQs

1. What was the reason for Bitcoin's recent sharp decline?

Bitcoin has seen significant declines today due primarily due to a combination of the macroeconomic environment. Rising bond yields in both Japan and the US have made traditional risk assets less desirable, while increasing uncertainty surrounding US Manufacturing from a weak Manufacturing Index has led to heavy liquidations, driving down Bitcoin and all other cryptocurrencies.

2. Has the level of volatility in cryptocurrency prices increased during times of economic distress?

Cryptocurrency markets tend to act like high-risk assets. When there is uncertainty in the broader markets, they are impacted disproportionately. When bond yield rates create unsafe havens, the demand for cryptocurrency decreases. This reduced demand often results in large amounts of selling, which causes large price movements and volatility.

3. Are altcoins similarly affected like Bitcoin during times of crashes?

Most altcoins typically, but not exclusively, follow the movement of Bitcoin; hence Bitcoin dominates overall market sentiment. When Bitcoin suddenly falls, many traders will quickly sell their positions in other coins. Some altcoins may show relative strength based on their liquidity, continuing updates, and market interest, but most still experience significant levels of price volatility.

4. Do you think the current dip in crypto could be a long-term problem for current investors?

Not really! Short-term downwards movement can cause stress; however, historically, crypto has always been through correction and recovery cycles in the market over and over again. Currently, the downward trend of the crypto market is due to macroeconomic pressures as opposed to problems within the crypto market structure; therefore, long-term investors will tend to view declines as normal occurrences within an overall cycle of the market.

5. What would you recommend to new crypto investors during periods of downward movement in the market?

I would recommend new investors refrain from panic selling during periods of volatility, but instead concentrate on learning about the fundamentals surrounding the crypto market. New crypto investors should track relevant economic indicators, evaluate long-term value, and avoid using excessive leverage in their trading. It is beneficial for an investor to have a diversified portfolio of crypto assets and to maintain discipline when trading, to help avoid risk associated with market corrections.