Summary of this article
Bitcoin and major cryptos drop over 5%, starting December weakly.
Market cap falls sharply, but trading volume spikes amid volatility.
Experts expect cautious trading now, with possible relief rally ahead.
Bitcoin and other major cryptocurrencies opened in the red in December after a period of price fluctuations over the past few weeks. The market continues to adjust with investors monitoring how digital assets may move as the month progresses.
Crypto Market Begins December in Red
December opened on a weak note for cryptocurrencies, with major digital assets recording notable losses in the first 24 hours of the month. Bitcoin (BTC) fell 5.13 per cent to $86,726.92, after reaching a weekly high of $92,969 on November 28, reflecting continued market volatility. Also, Ethereum (ETH) dropped by 5.64 per cent to $2,840.54. Other coins also saw declines, including XRP, which fell by 6.75 per cent to $2.04, BNB, which fell 6.24 per cent to $824.05, and Solana (SOL), which plummeted 7.15 per cent to $127.06.
The overall crypto market capitalisation fell 4.91 per cent in the past 24 hours to $2.95 trillion, a 20 per cent decline for the month so far, according to Coinmarketcap. However, the 24-hour trading volume surged 62 per cent to $133.87 billion, indicating heightened market activity.
The market’s early December slump saw investors closely monitoring developments, as digital assets continued to respond to broader economic cues and market sentiment.
Edul Patel, CEO of Mudrex said, “Bitcoin’s pullback to $86,000 levels was largely driven by traders turning cautious ahead of Jerome Powell’s discussion later today, which could indicate the US Federal Reserve’s stance on a rate cut in December. Additionally, institutions tend to reposition their holdings at the start of a month, leading to profit booking.”
CoinSwitch Markets Desk said, “This movement prompted traders and institutions to adopt a cautious approach, with some reducing exposure or pausing new positions while assessing broader market conditions.
Looking Ahead: Bitcoin’s Potential Rally and Market Trends
On future aspects, Patel said, “This correction can be seen as an accumulation zone around $80,000. With the odds of a 25 basis point (bps) rate cut increasing to about 90 per cent, a relief rally is expected, helping to recover the current losses.”
He added that the weekly inflows in crypto exchange-traded funds (ETFs) turning net positive for the first time since October indicate a potential trend reversal, with multiple days of $200–300 million inflows signalling institutional rotation back into Bitcoin.
CoinSwitch Markets Desk advised investors to stay cautious, focus on risk management, diversify and look at long-term positioning rather than react to daily market swings.
