（Singapore, 01.12.2025）Cryptocurrencies and global markets started December on a weak footing, as investors pulled back from risk assets ahead of a heavy week of economic data and central-bank signals. Bitcoin led the decline, sliding more than 5% in early Asian trading on Monday to fall below US$87,000, extending a selloff that has stretched across the past two months.
The drop added fresh pressure to a market already shaken by October’s unwinding of roughly US$19 billion in leveraged crypto bets — a collapse that came shortly after Bitcoin notched its record high of US$126,251. Although the token managed to climb back above US$90,000 last week, sentiment remains fragile. In November alone, Bitcoin lost nearly 17% of its value.
Ether also retreated more than 6% to below US$2,900, while Solana slid over 7%, reflecting broad weakness across digital assets.
Traders Brace for More Downside
“It’s a risk-off start to December,” said Sean McNulty, APAC derivatives trading lead at FalconX. He noted that inflows into Bitcoin ETFs remain unusually weak and dip-buying interest has thinned. “We expect the structural headwinds to continue this month. We are watching US$80,000 on Bitcoin as the next key support level.”
Market concerns were further stirred by comments from Strategy Inc. CEO Phong Le, who said on a podcast that the company — one of the world’s largest corporate Bitcoin holders — could sell tokens if its mNAV, a valuation ratio based on enterprise value and Bitcoin holdings, turned negative. “We would sell Bitcoin if we needed to fund our dividend payments below 1x mNAV,” he said, describing the move as a last resort. Strategy currently holds about US$56 billion worth of Bitcoin, and its mNAV has dropped to 1.19.
Adding to the unease, S&P Global Ratings last week downgraded its assessment of the stability of USDT, the world’s largest stablecoin. The agency warned that falling Bitcoin prices may undermine the collateral base that supports the token.
Global Markets Turn Cautious
The weakness in cryptocurrencies echoed a broader retreat across markets. US stock futures slipped, with S&P 500 contracts falling as much as 0.7% and Nasdaq 100 futures declining nearly 1%. Japanese shares led losses in Asia as the yen strengthened, after Bank of Japan Governor Kazuo Ueda offered his clearest signal yet that the central bank may raise interest rates at its December meeting. Japan’s two-year bond yield touched its highest level since 2008.
Asian equities were mixed after posting their strongest weekly performance in nearly two months. A rally in metal shares helped lift Chinese stocks, even as new data showed factory activity remained in contraction throughout November.
Oil, silver and copper advanced, with WTI crude rising following OPEC+’s decision to pause production hikes during the first quarter.
Key US Data to Shape Fed Outlook
Investors are turning their attention to a packed US economic calendar, which is expected to offer important clues about growth momentum heading into 2026. Inflation trends, consumer spending — including Cyber Monday sales — and delayed economic indicators will all factor into expectations for the Federal Reserve’s next moves.
Markets remain confident that the Fed will deliver another rate cut in December, a view supported by swaps pricing and recent comments from New York Fed President John Williams. Still, the central bank’s pre-meeting blackout period means policymakers will refrain from discussing economic outlooks publicly.
White House economic adviser Kevin Hassett signaled during the weekend that markets may soon learn President Donald Trump’s nominee for the next Fed chair. Trump has stated he expects his chosen candidate to support further rate cuts.
“For now, the data supports the soft landing,” wrote Tom Essaye of the Sevens Report, referring to the resilience of the US economy. “However, there remain a lot of economic unknowns, and there are simmering risks that the economy is not as strong as investors believe given the lack of government data in recent months.”
With risk appetite fading and volatility creeping higher, traders across asset classes are adopting a wait-and-see stance. For crypto markets especially, thin liquidity, muted ETF demand and looming macro uncertainty could keep pressure on prices through the month.
Bitcoin’s next test, analysts say, is whether it can hold above US$80,000 — a level increasingly seen as the line between stabilization and a deeper correction.
