Bitcoin Faces Renewed Pressure Amid Market Selloff

On December 1, 2025, the cryptocurrency market experienced a significant downturn, with Bitcoin falling below $86,000, marking a 6% drop during early trading in Asia. Ether also saw a decline of over 7%, dropping to approximately $2,800. This selloff is part of a broader trend that has seen the market struggle since early October, when approximately $19 billion in leveraged bets were liquidated shortly after Bitcoin reached an all-time high of $126,251. In November alone, Bitcoin lost 16.7% of its value, although it briefly recovered to above $90,000 last week before the latest decline.

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Market analysts attribute the renewed pressure on cryptocurrencies to several bearish developments. Sean McNulty, APAC derivatives trading lead at FalconX, noted that the lack of significant inflows into Bitcoin exchange-traded funds and the absence of dip buyers are contributing to a "risk-off" sentiment as December begins. He highlighted that $80,000 is now a critical support level for Bitcoin. Additionally, Phong Le, CEO of Strategy Inc., indicated that his firm, which holds a $56 billion Bitcoin stockpile, might consider selling Bitcoin if its market net asset value (mNAV) falls below 1x, a situation that has become more likely as their mNAV has dropped to 1.19.

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The cryptocurrency market is also facing regulatory scrutiny. S&P Global Ratings recently downgraded its assessment of Tether (USDT), the largest stablecoin, to its lowest rating, warning that a decline in Bitcoin's value could leave USDT undercollateralized. Furthermore, the People's Bank of China issued a warning regarding the risks associated with virtual currencies, including stablecoins, urging government agencies to enhance coordination to combat illegal activities.

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The week ahead is pivotal for the U.S. economy, as policymakers evaluate the trajectory of interest rates heading into 2026. Economic data is expected to influence whether the Federal Reserve will continue its cycle of interest rate cuts. U.S. President Donald Trump recently announced his choice for the next Fed chair, emphasizing his expectation for rate reductions. This economic backdrop adds another layer of complexity to the already volatile cryptocurrency market.

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Critics of the current market dynamics point to the ongoing instability and the potential for further declines in cryptocurrency values. Jeff Ko, chief analyst at CoinEx, remarked that the combination of the USDT downgrade and the warning from the People's Bank of China has intensified the pressure on cryptocurrencies, suggesting a challenging environment for investors.

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• “It’s a risk off start to December,” — Sean McNulty, APAC Derivatives Trading Lead at FalconX

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• “We can sell Bitcoin and we would sell Bitcoin if we needed to fund our dividend payments below 1x mNAV,” — Phong Le, CEO of Strategy Inc.

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• “Jeff Ko, chief analyst at CoinEx, said that “a series of bearish developments over the weekend,” including the USDT downgrade and PBOC warning, had renewed the pressure on cryptocurrencies.” — Jeff Ko, Chief Analyst at CoinEx

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