Crypto prices today fell across the board on as thin liquidity, heavy leverage, and more than $600 million in liquidations drove a sharp market pullback.
- Crypto prices fell on Dec. 1, with BTC, ETH, BNB and XRP down 5–7% and total market cap at $3T.
- Liquidations jumped to $600M as thin liquidity and high leverage triggered sharp swings.
- Markets now look to the Dec. 10 Fed meeting for direction after a week of rising caution.
The total crypto market cap dropped 5% to $3.04 trillion, extending last week’s weakness. Bitcoin slipped 5.2% to $86,238, while Ethereum declined 6% to $2,833. BNB fell 5.5% to $828, and XRP slid 7% to $2.05.
Several smaller altcoins were hit harder, with Monad down 22%, Zcash lower by 18%, and Hyperliquid sliding 13%. Sentiment also cooled further after the Crypto Fear & Greed Index dropped four points to 24, moving back into “Extreme Fear.”
CoinGlass data showed a sharp jump in liquidations, which rose 416% to $609 million through the day. Long positions accounted for $542 million of that total.
Leverage pressure deepens weekend volatility
A familiar mix of thin weekend liquidity and high leverage played a central role in the day’s decline. Low volumes during late Sunday and early Monday UTC hours often amplify small sell orders. Bitcoin lost about $4,000 within minutes overnight, despite no major news event.
Forced liquidations triggered a chain reaction across derivatives platforms. When initial long positions were wiped out, forced selling added more pressure, pushing prices lower and causing further liquidations.
A wave of profit-taking has added to that pressure. Long-time holders and funds have been locking in gains after the post-halving run. Roughly $800 billion in value has been cut from the market since October, setting a cautious tone heading into December.
Macro factors continue to weigh on risk appetite. Japan’s rising interest rates have weakened the yen carry trade, historically a major source of crypto leverage. At the same time, renewed anti-crypto rhetoric in China and new tax proposals in parts of Europe have added to uncertainty.
December outlook hinges on the Federal Reserve
The focus now turns to the mid-December window, with the Federal Reserve meeting on Dec. 10 shaping expectations for the rest of the month.
A softer policy outlook could ease pressure on risk assets and help Bitcoin move toward the $100,000 to $105,000 region. A tougher stance from the Fed would pull markets toward the lower end of the recent range and could open a path back toward the $80,000 zone.
Some industry voices argue that the market has become too pessimistic. Dragonfly managing partner Haseeb pointed to a wave of doubt that has spread across communities, where even established assets like ETH and SOL are being written off.
He compared the current mood to the long period when Amazon faced early doubts, suggesting that investors often struggle to judge long-term compounding.
With Ethereum only a decade old, he views the current discomfort as part of a natural cycle. His view is that blockchain networks are still laying the foundations for a financial system that will grow more connected over time.
For now, traders are watching liquidity, positioning, and the upcoming macro signals that could decide whether December closes with a rebound or a deeper pullback.
