Why Bitcoin price (BTC USD) crashed today: December crypto market sell-off reasons explained

Synopsis Bitcoin price crash today: Cryptocurrencies experienced significant declines on the first trading day of December, with Bitcoin dropping 5% and other major coins like Ethereum and Solana also falling. This downturn is attributed to Federal Reserve interest rate uncertainty and volatility in AI stocks, impacting investor sentiment and leading to broad selling pressure across the crypto market. Bitcoin price crash today: December, a month usually filled with holiday cheer and time off with loved ones, is starting off on a rough note for cryptocurrency investors. On the first trading day of the month, nearly all major cryptocurrencies experienced significant declines, continuing a trend of volatility seen over the past month, as per a report. Bitcoin Price USD Today Crashes in December’s First Trading Day Bitcoin (BTC) dropped about 5%, trading around $86,600, down from roughly $111,000 at the start of November, a 21% decline in just 30 days, as per a Fast Company report. Ethereum, XRP, Solana, and Dogecoin Also Fall Today Ethereum (ETH) fell 5.5% for the day, bringing its monthly losses to over 26%. XRP dropped 6.8%, BNB fell 5.9%, and Solana (SOL) declined 6.8%, with Solana losing more than 31% over the past month. Meme coin Dogecoin (DOGE) was down 8% today and more than 26% over the past 30 days. ALSO READ: Mortgage rates today decline on December 1: Average 30-year fixed dips to 6.144% - is a bigger drop possible ahead of the Fed’s decision? Bitcoin Price Today Drop Reason: Federal Reserve Uncertainty Influences Crypto Prices There isn’t a single event causing the drop. Analysts point to several factors likely influencing the market. One major factor is uncertainty surrounding the Federal Reserve’s upcoming interest rate decision on December 9–10. Live Events While a rate cut is generally positive for cryptocurrencies, boosting liquidity and encouraging risk-taking, markets are currently pricing in an 83% chance of a 25-basis-point cut. If the Fed doesn’t lower rates, the lack of increased liquidity could keep pressure on crypto prices. ALSO READ: Bitcoin price today drops to $85,000: Why Michael Saylor predicts BTC USD could reach $21 million in 21 years — is it possible? BTC USD Price Decline Reason: AI Stock Volatility Impacts Crypto Investors Investor sentiment in the stock market may also be contributing. Shares of AI-focused companies such as Nvidia (NVDA) and Microsoft (MSFT) fell nearly 12% and more than 9%, respectively, over the past month, as per the Fast Company report. Many high-risk investors in AI stocks are also cryptocurrency investors. When one high-risk asset drops, investors often sell others to limit losses, adding pressure on the crypto market. Bitcoin Price USD Down Today Reason: Other Factors Contributing to Crypto Market Drop Additional factors include warnings from the People’s Bank of China about illegal activity in digital tokens, which negatively affected related stocks on the Hong Kong market. Early Monday trading also saw forced liquidations in crypto markets as traders failed to meet margin requirements, further pushing prices down. Mixed Performance for Cryptocurrencies in 2025 2025 began with optimism for digital assets, fueled by expectations of crypto-friendly policies under the Trump administration. Bitcoin even reached an all-time high above $126,000. But since then, the market has cooled. Bitcoin has lost about 7.24% of its 2025 opening value. Ethereum is down 14.6%, Solana has dropped 32%, and Dogecoin is down 26% for the year. BNB remains one of the few bright spots, rising nearly 18% so far in 2025. FAQs Why did Bitcoin price drop today? Market sentiment turned negative, and cryptocurrencies faced broad selling pressure. Did stock market trends influence crypto declines? Yes, falling shares of AI-focused stocks like Nvidia and Microsoft affected high-risk investors. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. ...moreless (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. ...moreless