Cryptocurrency Prices Plunge, Traders Eye Support Levels

SINGAPORE — Cryptocurrencies experienced a sharp decline on December 1, 2025, increasing concerns among traders about market stability. Bitcoin fell as much as 4.3% to below $88,000 during early Asia trading. Ether, another major cryptocurrency, dropped 6% to around $2,900, according to data from Bloomberg.

This recent downturn extends a troubling trend in the cryptocurrency market. Following a sell-off that began in October, about $19 billion in leveraged positions were liquidated shortly after Bitcoin reached an all-time high of $126,251. Despite a brief recovery last week when Bitcoin climbed back above $90,000, the market has resumed its downward path.

Sean McNulty, APAC derivatives trading lead at FalconX, emphasized the current risk. “It’s a risk-off start to December,” he stated. “The biggest concern is the meager inflows into Bitcoin exchange-traded funds and the absence of dip buyers.” He pointed to $80,000 as a crucial support level for Bitcoin as it faces this downturn.

Market data shows that Bitcoin has breached significant support at $89,500, further fueling the sell-off. Riya Sehgal, a research analyst at Delta Exchange, noted that liquidations have intensified, with $300 million in leveraged long positions wiped out. She warns that if the selling persists, Bitcoin could retest levels of $85,500 or even $82,000.

Adding to market pressures are macroeconomic factors, including high Japanese bond yields and low inflows, contributing to heightened volatility in cryptocurrency trading. Harish Vatnani, head of trade at ZebPay, pointed out the impact of ongoing U.S. jobless claims and a soft labor market on Bitcoin prices.

Analysts suggest that upcoming economic indicators from the U.S. Federal Reserve may further influence market direction. The anticipation of interest rate decisions is critical as the U.S. prepares for potential monetary policy shifts. The upcoming days will provide a vital snapshot of U.S. economic momentum headed into 2026.

As the market stabilizes, traders are cautiously optimistic. Recent trading volumes show significant activity, indicating high liquidity despite the uncertainty. Experts remain attentive to Bitcoin’s performance, with $85,000 as the key support level to monitor in the coming weeks.