Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Key Moments

  • Bitcoin dropped to about $84,000 before rebounding near $87,000 on Monday, extending a decline from its October high around $125,000.
  • As of early December 2025, the Crypto Fear & Greed Index stood at 23/100, signaling “Extreme Fear” among market participants.
  • Strategy Inc set up a $1.44 billion USD reserve and cut its 2025 Bitcoin price outlook from $150,000 to a range of $85,000 to $110,000.

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.

Key Market Levels and Metrics

Asset / MetricRecent LevelReference PointComparison / Change
Bitcoin price (Monday low)$84,000 (€72,328)Early NovemberBelow roughly $100,000
Bitcoin price (Monday rebound)Near $87,000October highBelow around $125,000
Bitcoin prior records$120,000 (€103,394)August and OctoberRecord-breaking highs
Ethereum priceAbout $2,800One week earlierRoughly 7% below $3,000
Ethereum prior levelNear $4,800AugustSteep decline from peak
Crypto Fear & Greed Index23/100Early December 2025“Extreme Fear” territory
Strategy Inc USD reserve$1.44 billion (€1.24bn)Funding sourceBacked by recent stock sales
Strategy Bitcoin year-end 2025 target (old)$150,000Earlier guidanceSuperseded
Strategy Bitcoin year-end 2025 target (new)$85,000 – $110,000Updated guidanceLowered expectation
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: EUR/USD daily trading forecastForex Market: EUR/USD daily trading forecast Yesterdays trade saw EUR/USD within the range of 1.0889-1.1032. The daily high has also been the highest level since March 18th, when a high of 1.1033 was recorded. The pair closed at 1.0926, down 0.18% on a daily basis, or the first loss in […]
  • Forex Market: GBP/NZD daily forecastForex Market: GBP/NZD daily forecast During yesterday’s trading session GBP/NZD traded within the range of 1.9746-1.9797 and closed at 1.9791.At 6:15 GMT today GBP/NZD was adding 0.04% for the day to trade at 1.9791. The pair touched a daily high at 1.9814 at 2:00 GMT, […]
  • Forex Market: USD/CAD daily trading forecastForex Market: USD/CAD daily trading forecast Yesterday’s trade saw USD/CAD within the range of 1.3181-1.3312. The pair closed at 1.3208, falling 0.74% on a daily basis, or at the sharpest rate since August 31st, when it slid 0.79%. The daily high has been the highest level since […]
  • Natural gas trading outlook: futures steady as active weather continuesNatural gas trading outlook: futures steady as active weather continues Natural gas was little changed on Monday after rising for a third week last week with weather forecasts calling for an active Spring pattern to continue through the rest of May, although past the short-term sentiment remained bearish […]
  • Nikon Corp. share price down, faces criticism from CCTV over its D600 camerasNikon Corp. share price down, faces criticism from CCTV over its D600 cameras One of Nikon Corp.s spokesmen – Ryota Satake – announced on a telephone call that the company will stop selling its D600 digital camera model in China due to a government order it received today. The company also said that it will offer free […]
  • Sterling Holds Near 2-Month Low Ahead of U.S. DataSterling Holds Near 2-Month Low Ahead of U.S. Data Key Moments GBP/USD trades just above the 1.3200 area after hitting a two-month low on Tuesday, with downside risks still dominating. Firm expectations for another Fed rate hike and elevated U.S. yields continue to underpin the […]