Cryptocurrency markets witnessed a sharp and sudden drop on Sunday, leaving investors confused and searching for answers. Several users on social media reported that major tokens such as Bitcoin and Dogecoin crashed within minutes, with one investor posting, “What is Bitcoin down today?” while another asked, “Is there a reason behind this crash?”
At the time of writing, Bitcoin slipped nearly 3% in the last hour, while Ethereum dropped more than 4.5%, according to CoinMarketCap. Screenshots shared online revealed steep red candlesticks across the board, adding to investor anxiety.
One user on X summed up the moment:
“Crypto off to a rough start as nearly $400,000,000 longs were liquidated in the last hour.”
Another joked darkly, “Not sure who needs to hear this, but crypto is going to zero rn,” attaching a crypto price tracker showing the sudden dip.
What we know so far
As of now, there is no confirmed reason behind the sudden fall. Cryptocurrency markets are highly volatile, and sharp price movements can be triggered by multiple overlapping factors such as:
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liquidations in leveraged futures positions
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shifts in investor sentiment
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global macroeconomic cues
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regulatory uncertainty
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low liquidity during weekend trading
Bloomberg reported that Bitcoin slid as much as 4.3% to below $88,000 in early Asia trading, while Ether fell 6% to below $2,900.
Sean McNulty, APAC derivatives trading lead at FalconX, told Bloomberg,
“It’s a risk-off start to December. The biggest concern is the meagre inflows into Bitcoin ETFs and absence of dip buyers. We expect structural headwinds to continue this month.”
He added that $80,000 is the next key support level for Bitcoin.
Broader market mood is cautious
The week ahead is crucial, with the US economy preparing to release fresh data that may guide interest rate expectations for 2026. Risk assets, including crypto, tend to react sharply to monetary policy cues.
Adding to the macro uncertainty, President Donald Trump said on Sunday that he has selected a nominee for the next Federal Reserve chair — a position directly tied to the push for lower borrowing costs.
Asian markets also reflected caution, with regional stocks wavering in early trade even after their strongest weekly performance in nearly two months. In the US, S&P 500 futures slipped, signaling a more risk-averse start to the week.
