#CryptoMarketPullback

Cryptocurrency sharp decline triggers new sell-off wave

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Cryptocurrency sharp decline triggers new sell-off wave
Publication Date 01.12.2025 07:27
Update Date 01.12.2025 07:30
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© Reuters
Bitcoin US Dollar
4.33%

Ethereum US Dollar
5.52%

ForInvest - The cryptocurrency market faced another sharp sell-off on Monday. Bitcoin dropped to $85,763.37, approaching a 6% decline during early Asian trading hours.

Ether price also saw a decline of up to 7%, reaching $2,812.26. Currently, it is down 6.89% at $2,814.03.

The market is fragile after weeks of selling, which began after a few days of Bitcoin hitting a record high of $126,251 in early October and the liquidation of approximately $19 billion in leveraged positions.

In the last 3 months, Bitcoin has lost 23.02%, and since the beginning of the year, it has declined by 8.46%.

Ethereum has lost 34.78% in the last 3 months and 15.9% since the start of the year.

Following Monday’s new sell-offs, investors are preparing for larger declines. Sean McNulty, Head of Derivatives at FalconX APAC, said, "December started with risk aversion. Weak inflows into Bitcoin ETFs and lack of buying interest are the biggest issues. We expect structural pressures to continue this month. $80,000 is the next critical support."

Investors are also considering the statements by Strategy Inc. CEO Phong Le, who said they might sell Bitcoin if the mNAV ratio turns negative. Le mentioned this would be a last resort to finance dividend payments. The company holds $56 billion worth of Bitcoin, and the mNAV ratio has fallen to 1.19.

Last week, S&P Global Ratings downgraded the stability assessment of the largest stablecoin, USDT, to the lowest level, warning that the decline in Bitcoin’s value could leave the stablecoin unsecured.

This week, key data on the pace of the US economy will be released. These data will shape expectations for the Fed’s interest rate path toward 2026. US President Donald Trump announced on Sunday that he has selected the next Fed chair candidate and expects interest rate cuts from the candidate.