Major Cryptocurrencies Resume Decline as Markets Enter December Under Pressure
Bitcoin and Ethereum fell on Monday as digital assets resumed their recent sell-off. According to CNBC, Bitcoin dropped to around $84,305 by 11:25 a.m. ET, a decline of nearly 8%. Ethereum fell approximately 10% to $2,732. Solana decreased about 10% to around $124, while other tokens also recorded losses.
The People's Bank of China issued a statement on Saturday warning of illegal activities related to digital currencies. This announcement put pressure on Hong Kong-listed shares of digital assets companies during Monday's trading session. The fresh decline in cryptocurrencies comes amid broader risk-off sentiment in financial markets at the start of December.
Market Liquidations Reach $600 Million in 24 Hours
The sell-off triggered more than $600 million in forced liquidations of leveraged positions within 24 hours. Fast Company reports that Bitcoin has now declined 21% over the past 30 days, dropping from around $111,000 to just over $86,600. Ethereum fell more than 26% during the same period.
The price movements matter because they expose the fragility of leveraged trading in crypto markets. According to Galaxy Digital, crypto-collateralized borrowing reached a record $73.6 billion in the third quarter of 2025. Long positions, which bet on price increases, made up the majority of liquidations. Traders who borrowed funds to amplify their positions faced forced closures when collateral became insufficient.
Federal Reserve Decision Looms Over Crypto Markets
Uncertainty about the Federal Reserve's December interest rate decision adds to market pressure. The Federal Open Market Committee meets December 9-10 to vote on rates. Coinpedia notes that market expectations for a rate cut have risen to 89%, up from below 50% in late November.
Lower interest rates typically benefit cryptocurrencies by increasing liquidity and making risk assets more attractive. However, the anticipated cut may already be priced into current valuations. Bitcoin's correlation with traditional equity indices like the Nasdaq has increased, making digital assets more sensitive to macroeconomic factors.
The crypto market faces both institutional and retail pressure. Spot Bitcoin exchange-traded funds saw $3.45 billion in outflows during November 2025. Combined with elevated leverage levels and thin trading volumes, these conditions create potential for continued volatility. Technical indicators show Bitcoin's Relative Strength Index at 33, approaching oversold territory but not yet suggesting an immediate reversal.
Further Reading
For deeper insights into global adoption trends and regulatory frameworks affecting digital assets, our Alternative Financial Systems Index tracks adoption metrics and policy developments across 50 countries. The index provides analysis of how different jurisdictions approach cryptocurrency regulation and market infrastructure.
