Crypto Market Turmoil Deepens as December Sell-Off Intensifies

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Broad-Based Crypto Declines Rattle Investors

A sweeping sell-off in digital assets intensified this week, erasing billions from total crypto market capitalization and raising renewed worries about possible spillover effects both within the sector and into related financial markets.

Bitcoin traded down to roughly $84,000 (€72,328) during Monday’s session before recovering to near $87,000 later in the day. The coin had already touched more severe lows earlier in November, following a short-lived stabilization at the end of that month that briefly lifted it above $90,000. Even so, prices remained well below the approximately $100,000 level seen in early November and far under the October peak near $125,000.

The weakness has not been limited to Bitcoin. Major alternative cryptocurrencies also came under pressure, with Ethereum recently changing hands around $2,800. That level reflects a roughly 7% decline from $3,000 one week earlier and a sharp pullback from the almost $4,800 levels reached in August.

Sentiment Gauge Signals “Extreme Fear”

As of early December 2025, the Crypto Fear & Greed Index – a sentiment barometer for digital asset investors modeled on CNN’s Fear and Greed Index for other US stocks – remained lodged in the “Extreme Fear” zone, posting a reading of 23/100. The figure highlights the depth of the current pessimism sweeping across crypto markets.

The index aggregates six core indicators into a single daily score, blending measures such as price volatility, trading momentum and volume, social media positioning, coin dominance, and Google search activity to produce a composite snapshot of market psychology.

From Defiance to Doubt in Bitcoin’s 2025 Journey

For much of this year, many crypto backers appeared increasingly resistant to repeated alerts that a Bitcoin bubble could be forming, particularly as each correction was followed by an even more powerful rally.

In March and April, Bitcoin experienced sharp pullbacks before climbing to new record highs of $120,000 (€103,394) in both August and October. The election of Donald Trump further entrenched the view among some investors that crypto’s ascent enjoyed political backing, an outcome seen as paradoxical for an asset originally designed to exist outside government-controlled monetary frameworks.

Optimism strengthened after Trump signed the GENIUS Act, described as the first US federal law regulating stablecoins. The measure was widely seen as granting official recognition to core segments of the crypto landscape.

However, sentiment shifted abruptly in November, when Bitcoin’s sharp reversal began and the downturn gathered momentum into December.

Strategy Inc Moves to Bolster Confidence

Against this backdrop, Strategy Inc, described as the world’s largest corporate holder of Bitcoin, sought to calm markets unsettled by the latest wave of selling. On Monday, the company unveiled a $1.44 billion (€1.24bn) cash buffer aimed at reinforcing its balance sheet.

According to the firm, the newly created US dollar reserve – financed through recent share issuances – is designed to fund at least 12 months of dividend and interest obligations, with a longer-term objective of building enough liquidity to cover 24 months.

“Establishing a USD Reserve to complement our BTC reserve marks the next step in our evolution, and we believe it will better position us to navigate short-term market volatility while delivering on our vision of being the world’s leading issuer of digital credit,” Michael Saylor, the founder and executive chairman of Strategy, said in a statement.

Revised Bitcoin Outlook and Guidance

The firm’s announcement coincided with a notable adjustment to its own expectations for Bitcoin’s performance. Strategy has scaled back its prior 2025 earnings guidance, which had been built around a projected year-end Bitcoin price of $150,000. The company now anticipates a less aggressive range of $85,000 to $110,000 for the end of 2025.

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