The cryptocurrency market witnessed a fresh wave of selling pressure on December 1, with major digital assets experiencing significant declines during early Asian trading hours. According to Bloomberg reports, Bitcoin dropped 4.3% to fall below $88,000, while Ethereum declined 6% to slip under $2,900.
Data from CoinMarketCap shows this 24-hour decline has extended the broader 30-day fall of 19.85%. The selloff has been intensified by leverage liquidations and wider economic concerns affecting investor sentiment across digital asset markets.
One of the key factors behind this decline includes concerns over potential interest rate hikes by the Bank of Japan, with Japanese bond yields reaching 15-year highs. This development has triggered selling pressure across Asian markets, creating a ripple effect in the cryptocurrency space.
According to CoinMarketCap analysis, the crypto market has seen reduced leverage activity, with $16 million worth of Bitcoin long positions liquidated within 24 hours. Bitcoin was trading at $86,440.40, down 4.63%, with a market capitalization of $1.72 trillion (down 4.66%) and a 24-hour trading volume of $52.4 billion (up 40.69%).
Technical analysis reveals that Bitcoin has broken through the crucial support level of $90,954, accelerating the selloff toward the $87,000 level. Market experts are closely watching whether the liquidations will push the world’s largest cryptocurrency toward October’s low of $80,659.
Ethereum (ETH) has also faced significant pressure, with its price falling 5.07% to $2,830.06. The second-largest cryptocurrency by market cap now stands at $341.57 billion (down 5.07%), while its 24-hour trading volume reached $18.02 billion, marking a 44.81% increase.
Following Monday’s fresh selloff, traders are expressing concerns about further market declines. Shaun McNulty, APAC Derivatives Trading Lead at FalconX, noted that December has started negatively for the market. He highlighted that the biggest concern remains reduced investment in Bitcoin ETFs and the absence of buyers in the falling market. McNulty suggested monitoring Bitcoin’s next significant support level at $80,000.
Looking ahead, upcoming U.S. economic data next week will be crucial as policymakers assess interest rate trajectories through 2026. This data will shape expectations around Federal Reserve rate cut hopes. U.S. President Donald Trump mentioned on Sunday that he has finalized his choice for the next Fed Chairman.
Akshat Siddhanth, Lead Quant Analyst at Mudrex, observed that Bitcoin has fallen over 4% to approximately $87,300 as traders exercise caution ahead of Jerome Powell’s expected comments today, which could influence upcoming FOMC meeting expectations.
Despite the current downturn, Bitcoin ETFs recorded their first weekly net inflow since October, indicating potential improvement in institutional demand. Strong liquidity and better market depth also support a positive outlook. If sentiment stabilizes, BTC could attempt another upward move. Currently, $85,000 serves as key support, while $92,400 remains immediate resistance.
This report was compiled by Daily Kiran news desk based on market data and expert analysis.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
