As of December 2, 2025, the cryptocurrency market is experiencing a significant downturn, with Bitcoin and other major coins seeing steep drops following a period of volatility. Bitcoin plunged to around $85,000, its worst daily performance since March, contributing to a broader crypto sell-off. This decline comes after a difficult November for Bitcoin, which saw it lose over 17%.

Key market headlines:

Price plunge: Bitcoin (BTC) has fallen below $86,000, with some sources reporting a brief dip below $85,000.

Ripple effect: The sell-off has spread to other cryptocurrencies.

Ethereum (ETH), for instance, was down over 7% on December 2, trading around $2,700. Major crypto-related stocks, such as Coinbase, have also been negatively impacted.

Catalysts for the fall: Multiple factors have contributed to the market decline, including:

DeFi exploit: A flaw in the Yearn Finance DeFi platform that allowed an attacker to mint excessive yETH tokens triggered a broader sell-off.

Increased risk aversion:

#Escalating tariff tensions and fears of a global trade war have pushed investors away from risky assets, including cryptocurrencies.

External economic concerns: Actions by central banks like the Bank of Japan and the People's Bank of China have also influenced the market downturn.

Outlook: While historical data shows December has mixed results for Bitcoin, recent institutional and broader economic caution suggests a more defensive posture from investors. Some analysts have even warned of a potential "crypto winter" if conditions do not improve.