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Bitcoin plunges to below $88,000 in risk-off start to December

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The cryptocurrency market took a dive on 1 December, in a fresh selloff, with Bitcoin down 4.3% to below $88,000 early in Asia trade, and Ether slumped 6% to below $2,900, Bloomberg reported.

According to data on CoinMarketCap, the market drop over the last 24 hours has extended a 30-day decline of 19.85%, amplified by leveraged liquidations and macro jitters. Market capitalisation is at $2.94 trillion, with trading volumes over the past 24 hours at $116.18 billion.

Among other factors, there are fears that the Bank of Japan (BoJ) may hike interest rates even as Japanese bond yields hit 15-year highs, triggering Asian market selloffs. Overall, the crypto market leverage has “unwinded”, with $16 million Bitcoin long liquidations in 24 hours, CoinMarketCap analysis added.

This comes after some $19 billion in levered bets were also wiped out in early October, just days after Bitcoin set an all-time high of $126,251, the Bloomberg report added.

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Crypto price today: Check Bitcoin, Ether, Tether, XRP, Binance Coin

  • At the time of writing, Bitcoin was trading down 4.63% at $86,440.40, with a market capitalisation of $1.72 trillion (down 4.66%), and trading volume of $52.4 billion (up 40.69%).

According to CoinMarketCap analysis, Bitcoin has breached critical support at $90,954, accelerating selling toward $87,000 Fibonacci levels. Experts will be watching if liquidations force the world’s biggest cryptocurrency toward its October low ($80,659).

  • At 8.55 am, Ethereum was down 5.07% to $2,830.06, with a market cap of $341.57 billion (down 5.07%) and a trading volume of $18.02 billion (up 44.81%).
  • US Dollar-linked altcoin Tether is trading at $1, seeing minimal movement, with a market cap of $184.65 billion (down 0.01%) and a volume trade of $82.19 billion (up 48.43%).
  • XRP is trading at $2.05 apiece, down 6.55%, with an m-cap of $123.94 billion (also down 6.55%), and volume trade of $3.15 billion (up 53.2%).
  • Rounding off the top five was Binance Coin, down 4.71% to $831.89, with a market cap of $114.58 billion (down 4.7%), and volume trade of $1.91 billion (up 43.79%).
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Crypto market outlook, Bitcoin price: What do traders expect?

Traders told Bloomberg they are “bracing for bigger” downward movement.

Sean McNulty, APAC derivatives trading lead at FalconX, said, “It’s a risk-off start to December. The biggest concern is the meagre inflows to Bitcoin exchange-traded funds and the absence of dip buyers. We expect the structural headwinds to continue this month. We are watching $80,000 on Bitcoin as the next key support level.”

According to Riya Sehgal, Research Analyst at Delta Exchange, Bitcoin’s plunge below $87,000 and a spike in trading volumes to 38% have intensified bearish momentum, reflecting panic-driven liquidations. She added that $300 million in leveraged longs were wiped out.

“The break below key technical support near $89,500 has shifted Bitcoin’s short-term outlook toward further downside, with potential retests of $85,500 or even $82,000 if selling persists. Still, structurally, this appears more like a leverage flush-out than a fundamental breakdown. Once excess leverage clears, Bitcoin could stabilise and attempt to reclaim the $90,000–$92,000 zone in the sessions ahead,” Sehgal feels.

Factors that will have an impact on crypto and Bitcoin prices in the coming weeks are the United States Federal Reserve’s rate decision, Donald Trump‘s choice of next US Fed chair (who he promises will deliver a rate cut), and Asian markets’ performance after what has been the best weekly advance in two months.

Harish Vatnani, Head of Trade at ZebPay, also noted that macro data, continued US jobless claims (at 1.96 million), and softer labour market added pressure as well. He said, “Bitcoin has a strong resistance at $93,500 and $1,00,000, whereas $85,000 and $80,000 will act as a strong support.”

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Bitcoin prospects: Can there be an upside?

According to data from the WazirX Trading Desk, Bitcoin’s price is at a “pivotal macro intersection”, where a weakening dollar provides a liquidity tailwind which improves market conditions for a sustained bid.

“With countries turning attention to non-sovereign stores of value amidst an uncertain purchasing power for their respective currencies. appetite. This environment tends to support Bitcoin accumulation during price uncertainty,” it said, adding that instead of trading purely on technical sentiment, the token “increasingly behaves like a cross-asset hedge against globally differing policies”.

Akshat Siddhant, Lead Quant Analyst at Mudrex, is also optimistic, adding, “Despite the pause in momentum, Bitcoin ETFs have posted their first week of net inflows since October, signalling a potential revival in institutional demand. Strengthening liquidity and improving market depth also support a constructive outlook. If sentiment stabilises, BTC could attempt its next leg higher. For now, $85,000 serves as key support, while $92,400 remains the immediate resistance.”

CoinSwitch Markets Desk also believes that Bitcoin has now cleared major long liquidations, and holding $86,000–$87,000 keeps the door open for a move toward $89,000–$90,000.

WazirX added that when put together, dynamics “tilt short-term conditions moderately bullish, with volatility elevated but structural demand improving. Over the last 24 hours, Bitcoin and Ethereum saw strong trading volumes, signalling high liquidity and active participation. High volume with slight price weakness typically reflects cautious sentiment: traders are active, but conviction is limited. Overall, the market is balanced but hesitant.”