U.S. Market Report — December 1, 2025

The crypto market opened December with a steep decline led by U.S. investor risk aversion. Bitcoin (BTC) fell more than 5%, dropping to the $86,000–87,000 range, while Ethereum (ETH) slipped to approximately $2,830 amid a rapid surge in liquidations. More than $200 million in long positions were erased in a single hour as volatility rippled across major trading platforms.

The downturn comes as traders brace for a pivotal week of U.S. economic data — positioning America as the main driver behind the global crypto correction.

U.S. Investors Pull Back as Federal Reserve Uncertainty Grows

Despite the Federal Reserve’s earlier decision to conclude its Quantitative Tightening (QT) cycle, uncertainty surrounding interest-rate cuts and inflation guidance continues to pressure risk assets.

Institutional desks across Wall Street have begun reducing exposure ahead of critical macro events:

• Non-Farm Payrolls (NFP)

• CPI and PCE inflation readings

• Scheduled remarks from Fed officials

“Markets don’t want surprises right now,” said a senior macro analyst in New York. “Without clarity from the Fed, investors are defaulting to risk-off positioning — and Bitcoin is the first to react.”

Derivatives Liquidations Accelerate the Downtrend

The sell-off triggered cascading liquidations on U.S. and offshore exchanges. Within minutes:

• Over $200 million in long positions were liquidated

• Open interest on major U.S. venues contracted sharply

• Algorithmic trading systems amplified the volatility

Analysts warn that excessive leverage has made the market increasingly fragile, magnifying every downside move.

Technical Breakdown Puts Key Price Levels at Risk

Bitcoin has lost its immediate bullish structure, forcing traders to reassess technical boundaries:

• Primary support: $80,000–85,000

• New resistance: $90,000

• Deep correction target: $75,000 if macro headwinds worsen

Ethereum shows parallel weakness, with traders watching U.S. Treasury yields and the Dollar Index (DXY) for direction.

Federal Reserve Will Decide Crypto’s Next Move

The upcoming U.S. economic calendar holds outsized influence over crypto sentiment.

A dovish signal from the Fed — or even confirmation of forthcoming easing in early 2026 — could spark:

• A BTC rebound toward $92,000–95,000

• Renewed institutional inflows

• A broader recovery led by RWA, EnergyFi, and AI tokens

But continued hawkish rhetoric would likely extend the current correction.

Analysts: “Volatility Is High, But So Are the Opportunities”

Despite the harsh sell-off, several U.S. analysts argue that the pullback may present an accumulation opportunity.

“This is a classic pre-Fed shakeout,” said one Chicago-based digital asset strategist. “Institutional investors expect volatility during macro-heavy weeks — but these periods often offer the most attractive entry zones.”

ETF flows into Bitcoin products remain positive, signaling institutional conviction remains intact despite short-term turbulence.

Conclusion: The U.S. Market Sets a Volatile Tone for December

Crypto markets enter December under heavy pressure from U.S. economic uncertainty. With Bitcoin and Ethereum losing ground and macro catalysts looming, traders are preparing for a decisive week that could shape the market’s trajectory into early 2026.

For now, the Federal Reserve remains the central force steering sentiment — and its next move could define the remainder of the year for digital assets.