Bitcoin crashed below $87,000 on December 1, 2025, after briefly attempting to reclaim $90,000, dragging the entire cryptocurrency market into deep losses and erasing nearly all gains from the previous week. The sharp decline began during Asian trading hours and escalated into a full-scale liquidation event, with over $600 million in leveraged trades liquidated globally within 24 hours, primarily concentrated in Bitcoin and Ethereum.
The sell-off was triggered by a renewed warning from the People's Bank of China (PBOC), which circulated a statement intensifying enforcement against crypto trading and specifically flagging stablecoins as a threat. Officials cited "virtual currency speculation has resurfaced" and rising retail participation as risks to financial stability, magnifying market anxiety during a highly leveraged phase.
Technical indicators offer little reassurance; Bitcoin's daily charts show a clear rejection at the $92,000 recovery zone, with RSI near oversold and MACD drifting downward—a sign of sustained selling momentum. Seasonality adds pressure, as November closed with a 17% loss, the worst since 2018, and historical data from Coinglass suggests red Novembers often precede red Decembers.
Meanwhile, traders are eyeing the Federal Reserve for potential relief. Data from CME Group indicates an 87% chance of a rate cut on December 10, up from 71% a week earlier, driven by weak U.S. job market data where continuing claims rose to 1.96 million. However, Bitcoin ETF inflows remain weak, with just $70 million net for the week ending November 28, and options markets show defensive sentiment with put options outpacing calls.
Analysts, such as macro strategist Adam Kobeissi, argue the crash is a mechanical reset due to excessive leverage rather than fundamental weakness, but confidence is shaken. The market now watches the $82,000–$84,000 support range for Bitcoin, with volatility expected to remain elevated in early December.
