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📉 CRYPTO MARKET PLUMMETS, WHY?
At the beginning of December 2025, major cryptocurrencies like #Bitcoin (BTC) and #Ethereum (ETH) were heavily pushed down: Bitcoin dropped more than 3-5%, while #Ethereum fell by about 5%.
According to aggregated data, the total market capitalization of the cryptocurrency market has “evaporated” over 1,000 billion USD in just about 6 weeks.
Many other altcoins (alternative coins), including both major altcoins and “meme-coins,” also plummeted heavily — with some losing 30-40% compared to their peak.
In November 2025, for Bitcoin, this is considered the “second worst month of the year” after a drop of more than 17% due to capital outflows from ETFs and holders suffering losses.
🔎 Main reasons for the price drop
Several key reasons cited by experts and analysts:
There were negative events from DeFi platforms — for example, the liquidity “pool” of Yearn Finance (yETH pool) encountered issues, sparking short-term panic.
Liquidity risk and cautious sentiment returning due to concerns about the global economy and fluctuations in financial/stock markets.
Many institutional and individual investors tend to lock in profits after a strong surge — creating significant selling pressure, dragging prices down.
The altcoin market — especially small projects and risky coins — is prone to evaporate when liquidity decreases or confidence declines, leading to a price drop.
💔 Consequences: Not just Bitcoin & Ethereum, but the entire market is “in the red”
When Bitcoin drops, it often pulls down altcoins and the overall market activity: many tokens lose significant value, with high volatility.
Bitcoin/ETH mining companies or crypto-related companies are also affected: stock prices plummet, and profits decline.
