Market Overview
On December 1, 2025, the total cryptocurrency market capitalization experienced a significant decrease, shedding $140 billion within approximately five hours. This sharp decline impacted major cryptocurrencies, including Bitcoin and Ethereum, reflecting heightened market volatility and persistent macroeconomic uncertainty.
The sell-offs in key digital assets underscore broader investor sentiments and suggest potential continued challenges in the cryptocurrency space.
Crypto Market Loses $140 Billion in Five Hours
The cryptocurrency market witnessed a substantial decline between 2:00 PM and 7:00 PM UTC on December 1, 2025. During this period, the total market capitalization dropped from $3.54 trillion to $3.40 trillion. This downturn affected major cryptocurrencies, with Bitcoin falling approximately 1.8% to around $101,265, and briefly dipping below the critical $100,000 threshold. Ethereum also saw a decrease of 1.6%, settling at $3,397.55. Several altcoins, including XRP and Solana, followed this downward trend.
This decline is attributed to increased market volatility and investor concerns, rather than direct funding withdrawals. On-chain data indicated significant liquidations, with over $1 billion in Bitcoin and $428 million in Ethereum being liquidated. Bitcoin's market dominance slightly decreased to 61.6%, suggesting a potential shift in investor interest towards other digital assets.
Market responses indicate a mixed sentiment. Denny Galindo, a strategist at Morgan Stanley, commented on the situation, suggesting that Bitcoin has entered a period of potential decline. Furthermore, insights from Glassnode highlighted that realized losses are increasing at rates comparable to previous major market crashes, such as the FTX event. This indicates substantial selling pressure from short-term holders. Despite the downturn, U.S. spot Bitcoin ETFs continued to attract interest, managing over $137 billion, which signifies sustained institutional engagement. Traders on social media platforms are adopting a cautious approach, awaiting clearer macroeconomic signals before making significant investment decisions.
Bitcoin Dips Below $100K Amid Market Volatility
The abrupt $140 billion market drop echoes patterns observed following the FTX collapse in 2022, emphasizing the cryptocurrency market's vulnerability to rapid corrections.
According to current data, Bitcoin's price is $86,448.19, with a market capitalization of 1,725,168,697,071 and a dominance of 58.61%. The 24-hour trading volume recently stood at 52,411,021,446, marking a 40.98% increase. Bitcoin experienced a 4.63% decline in the past 24 hours and a 21.30% decrease over the past month.
Research from the Coincu team suggests that heightened market volatility may prompt increased regulatory scrutiny. Institutions, however, remain actively engaged, as evidenced by U.S. spot Bitcoin ETF holdings. This continued interest in cryptocurrencies, despite market setbacks, signals a complex landscape for digital assets. The broader implications of this situation could involve greater attention from financial regulators on the cryptocurrency market.