Why is Crypto Market Down Today?
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Key Insights:
- Major cryptocurrencies drop as thin weekend liquidity triggers wide crypto market selloff and liquidations.
- Rising Japanese yields raise funding costs and add pressure to global risk assets.
- Claims of “Operation Chokepoint 3.0” highlight concerns over actions targeting key crypto figures.
The crypto market is under collapse as of writing after a sharp move during the thin weekend trading.
Market watchers highlighted factors such as rising Japanese yields, heavy futures liquidations, and weak ETF demand.
Notably, new claims of coordinated pressure on major crypto prices added to a broad decline across leading digital assets.
Crypto Market Falls as Liquidity Thins and Selling Spreads
The crypto market started December in the red and dropped below $3 trillion in total value.
Notably, the move came after a drop that took place late on November 30, which is often the quietest point in the trading week.
Leading digital assets, Bitcoin, Ethereum, XRP, Cardano, Solana, and other large coins all traded lower.
Bitcoin slipped to about $86,000 after a daily fall of 6.55%. Ethereum moved to $2,840 after losing 5.66%.
XRP price traded near $2.05 and showed a 6.41% decline. Cardano held support near $0.3879 after a drop of 7.46%.
Solana traded around $127.71 with a decline of 6.61% while Dogecoin moved to $0.1381 after more than 7% in losses.
Meanwhile, privacy coin Zcash stood out with a fall to $365.15 and a move of more than 20% over 24 hours.
Many traders faced forced selling. More than $640 million in futures positions were liquidated across major platforms.
In addition, most of the losses came from long positions. Thin weekend activity created wider price swings, and a small move pushed several assets below support levels.
Once the moves started, more positions were closed as stops triggered in quick succession.
It is important to mention that ETF flows also weakened. Spot Bitcoin ETFs saw $3.5 billion in outflows in November, complemented by Ether ETFs also losing $1.42 billion.
Market sentiment shifted toward caution as investors waited for the Federal Reserve meeting later in the month. The Fear and Greed Index moved back into extreme fear.
Japan Yield Shift Adds Pressure to Crypto Market
A rise in Japanese government yields added another factor behind the latest crypto market crash. The Japanese 2-year yield moved above 1%, which caught the attention of global crypto prices trader.
Ted Pillows noted that the change might show that the Bank of Japan could move toward a tighter stance after many years of low rates.
Higher yields often affect carry trades. These trades depend on low-cost borrowing in Japan.
When borrowing costs rise, traders may reduce positions in assets that carry more risk.
Bitcoin reacted quickly because the move took place during a time when order books were thin. With fewer market makers active, price levels moved faster than usual.
The change in Japanese yields came as global liquidity conditions shifted. Similarly, December 1 also marked the end of quantitative tightening.
Traders tried to understand how these shifts might shape markets, especially for assets that tend to react first to tighter conditions.
Operation Chokepoint 3.0 Claims Add to Crypto Prices Concerns
Some industry figures discussed another issue that could be shaping the negative outlook in the crypto market.
Perianne Boring stated that several major names appeared to be facing coordinated pressure.
The list included President Trump, David Sacks, Tether, Binance, and its former head Changpeng Zhao, MicroStrategy and Michael Saylor, and Jack Mallers.
She referred to the situation as “Operation Chokepoint 3.0.” Other reports pointed to steps that could affect companies holding large amounts of Bitcoin.
One major index provider said that firms with more than 50% of their assets in Bitcoin could face removal from global indexes in 2026.
Market participants suggested that such a move might lead to forced selling because many funds track those indices.
Talk around these actions added to the cautious mood in the crypto market.
Traders watched how these developments might affect liquidity, company holdings, and future demand for Bitcoin and other large assets.
Market attention stayed on how policy, funding costs, and institutional decisions might combine in the months ahead.
The post Why is Crypto Market Down Today? appeared first on The Coin Republic.
In This News
Coins
$ 85.79K
-5.95%
$ 2.77K
-8.41%
$ 2.02
-7.94%
$ 0.379
-10.7%
$ 0.99994
-0.01%
Share:
In This News
Coins
$ 85.79K
-5.95%$ 2.77K
-8.41%$ 2.02
-7.94%$ 0.379
-10.7%$ 0.99994
-0.01%Share:
Read More
Bitcoin Slides Below Key Levels as Short-Term Holders Face Deep Losses
Bitcoin Price Prediction: Sellers Tighten Control As Spot Outflows Hit $358M
Why is Crypto Market Down Today?
Share:
Key Insights:
- Major cryptocurrencies drop as thin weekend liquidity triggers wide crypto market selloff and liquidations.
- Rising Japanese yields raise funding costs and add pressure to global risk assets.
- Claims of “Operation Chokepoint 3.0” highlight concerns over actions targeting key crypto figures.
The crypto market is under collapse as of writing after a sharp move during the thin weekend trading.
Market watchers highlighted factors such as rising Japanese yields, heavy futures liquidations, and weak ETF demand.
Notably, new claims of coordinated pressure on major crypto prices added to a broad decline across leading digital assets.
Crypto Market Falls as Liquidity Thins and Selling Spreads
The crypto market started December in the red and dropped below $3 trillion in total value.
Notably, the move came after a drop that took place late on November 30, which is often the quietest point in the trading week.
Leading digital assets, Bitcoin, Ethereum, XRP, Cardano, Solana, and other large coins all traded lower.
Bitcoin slipped to about $86,000 after a daily fall of 6.55%. Ethereum moved to $2,840 after losing 5.66%.
XRP price traded near $2.05 and showed a 6.41% decline. Cardano held support near $0.3879 after a drop of 7.46%.
Solana traded around $127.71 with a decline of 6.61% while Dogecoin moved to $0.1381 after more than 7% in losses.
Meanwhile, privacy coin Zcash stood out with a fall to $365.15 and a move of more than 20% over 24 hours.
Many traders faced forced selling. More than $640 million in futures positions were liquidated across major platforms.
In addition, most of the losses came from long positions. Thin weekend activity created wider price swings, and a small move pushed several assets below support levels.
Once the moves started, more positions were closed as stops triggered in quick succession.
It is important to mention that ETF flows also weakened. Spot Bitcoin ETFs saw $3.5 billion in outflows in November, complemented by Ether ETFs also losing $1.42 billion.
Market sentiment shifted toward caution as investors waited for the Federal Reserve meeting later in the month. The Fear and Greed Index moved back into extreme fear.
Japan Yield Shift Adds Pressure to Crypto Market
A rise in Japanese government yields added another factor behind the latest crypto market crash. The Japanese 2-year yield moved above 1%, which caught the attention of global crypto prices trader.
Ted Pillows noted that the change might show that the Bank of Japan could move toward a tighter stance after many years of low rates.
Higher yields often affect carry trades. These trades depend on low-cost borrowing in Japan.
When borrowing costs rise, traders may reduce positions in assets that carry more risk.
Bitcoin reacted quickly because the move took place during a time when order books were thin. With fewer market makers active, price levels moved faster than usual.
The change in Japanese yields came as global liquidity conditions shifted. Similarly, December 1 also marked the end of quantitative tightening.
Traders tried to understand how these shifts might shape markets, especially for assets that tend to react first to tighter conditions.
Operation Chokepoint 3.0 Claims Add to Crypto Prices Concerns
Some industry figures discussed another issue that could be shaping the negative outlook in the crypto market.
Perianne Boring stated that several major names appeared to be facing coordinated pressure.
The list included President Trump, David Sacks, Tether, Binance, and its former head Changpeng Zhao, MicroStrategy and Michael Saylor, and Jack Mallers.
She referred to the situation as “Operation Chokepoint 3.0.” Other reports pointed to steps that could affect companies holding large amounts of Bitcoin.
One major index provider said that firms with more than 50% of their assets in Bitcoin could face removal from global indexes in 2026.
Market participants suggested that such a move might lead to forced selling because many funds track those indices.
Talk around these actions added to the cautious mood in the crypto market.
Traders watched how these developments might affect liquidity, company holdings, and future demand for Bitcoin and other large assets.
Market attention stayed on how policy, funding costs, and institutional decisions might combine in the months ahead.
The post Why is Crypto Market Down Today? appeared first on The Coin Republic.
In This News
Coins
$ 85.79K
-5.95%$ 2.77K
-8.41%$ 2.02
-7.94%$ 0.379
-10.7%$ 0.99994
-0.01%Share:
In This News
Coins
$ 85.79K
-5.95%$ 2.77K
-8.41%$ 2.02
-7.94%$ 0.379
-10.7%$ 0.99994
-0.01%Share:
Read More
Bitcoin Slides Below Key Levels as Short-Term Holders Face Deep Losses