Bitcoin and Ethereum began December on a challenging note, reflecting renewed caution in the cryptocurrency markets. Bitcoin fell as much as 4.3%, dipping below US$88,000, while Ethereum slid nearly 6% to trade under US$2,900. The pullback follows November’s sharp retracement, signaling persistent volatility as investors grapple with both macroeconomic uncertainties and crypto-specific risks.
The recent declines were amplified by a liquidity scare linked to a major decentralized finance platform, an event that reverberated across the broader digital-asset ecosystem. This incident heightened concerns over market stability, prompting traders to reassess positions amid a risk-off sentiment that has also affected traditional financial markets. Analysts note that fading expectations for near-term stimulus and the broader cautious tone among global investors have compounded pressure on cryptocurrencies.
Despite the downturn, some market strategists point to the scheduled end of the US Federal Reserve’s quantitative tightening program on December 1 as a potential stabilizing factor. Improved liquidity conditions could provide Bitcoin with a foundation to recover, though any sustained rally is likely to depend on broader market appetite returning. Ethereum, while retreating, continues to hover near a critical multi-year support level around US$2,850. This range is being closely monitored by traders for signs of resilience, and valuation models indicate that upside potential remains if market sentiment stabilizes.
In the near term, the ability of Bitcoin to hold the US$88,000-US$90,000 support band and Ethereum to strengthen within the US$2,850-US$3,000 range will be pivotal. Breaching these levels could trigger deeper pullbacks, while successful defense may offer early signals of recovery. With macroeconomic cues mixed and crypto-specific risks resurfacing, analysts expect a volatile start to December, tempered by pockets of cautious optimism for traders and investors alike.
Looking forward, the market’s trajectory will hinge on liquidity conditions, investor confidence, and broader risk appetite. While December’s opening highlights persistent fragility, the interplay of macro policies and decentralized finance dynamics could create opportunities for measured recovery in the weeks ahead.
