Bitcoin, Ethereum Experience Sharp Decline as Cryptocurrency Sell-Off Resumes
Published: Monday, December 1, 2025 | Updated 2 Hours Ago
By Hugh Leask
The cryptocurrency market saw a significant downturn on Monday as Bitcoin and Ethereum prices fell sharply, reigniting a sell-off that had paused following the volatile market movements in October.
As of 8:11 a.m. Eastern Time, Bitcoin traded near $85,959, marking a decline of nearly 6%. Ethereum also dropped approximately 6.6%, reaching around $2,827 in early trading. Other notable cryptocurrencies such as Solana experienced a fall of over 7%, trading near $127, while Dogecoin slid about 9%, reflecting broad negative sentiment across digital assets.
Pressure on Digital Asset Stocks in Asia Amid Regulatory Concerns
The sell-off was compounded in Asia where shares of companies related to digital assets listed in Hong Kong retreated. This decline followed a statement from the People’s Bank of China issued on Saturday that warned against illegal activities involving digital currencies. The heightened regulatory concern in one of the world’s largest markets for cryptocurrencies added to the downward momentum observed in digital assets.
Market Sentiment and Leverage Concerns Weigh on Cryptocurrencies
The renewed slide aligns with a broader risk-averse environment at the beginning of the month. Ben Emons, founder and CIO of Fedwatch Advisors, noted that nervousness persists among investors due to ongoing market volatility. Speaking to CNBC’s "Squawk Box Europe," Emons highlighted that a recent reversal in Bitcoin’s price was influenced by a $400 million liquidation on a cryptocurrency exchange.
Emons emphasized the extensive use of leverage in the crypto market, with some Bitcoin exchanges offering leverage up to 200 times. He explained that outstanding leverage in perpetual crypto futures is estimated at $787 billion, compared to approximately $135 billion in exchange-traded funds (ETFs). "You can do the math," he said, suggesting that significant liquidations may continue if Bitcoin prices fail to rebound from current lows.
Retail Investors Drive Volatility Amid Decentralized Market Structure
According to Emons, the recent turbulence is primarily driven by retail investors, whose reactions differ from institutional players. He pointed out that the decentralized and opaque nature of cryptocurrency exchanges contributes to heightened volatility and increased risk. This dynamic presents ongoing challenges as the use of leverage expands within the market.
Macroeconomic Factors Continue to Influence Investor Behavior
Investors remain cautious amid macroeconomic uncertainties, including speculation about potential changes in U.S. interest rate policy. Additionally, the market’s apprehension toward potentially overvalued artificial intelligence-related stocks contributed to volatility in November, which spilled over into crypto markets. These factors combine with structural issues in digital asset trading to create a complex and unpredictable environment for investors.
Looking Ahead
As the cryptocurrency market navigates through regulatory scrutiny, leveraged positions, and shifting economic conditions, participants remain watchful for signs of stabilization. The interplay between retail investor behavior and evolving macroeconomic factors will be a key determinant of future price trends in Bitcoin, Ethereum, and other digital currencies.
For ongoing coverage and expert analysis on the cryptocurrency market, visit CNBC’s Markets section.
— End —