Bitcoin just had its worst month in years, Ethereum is struggling to hold $2,800, and the entire market is down over $1 trillion since the November peak. In times like these — when volatility spikes, liquidations hit billions, and every headline screams panic — you need an exchange that’s fast, cheap, and built for action. Whether you’re shorting the drop, buying the fear, or just protecting your stack, Tapbit gives you every tool to stay ahead. Let’s dive into why the market is crashing — and exactly how to profit from it.
Bitcoin’s Stubborn Slump Persists Into December – A Warning Sign For Wall Street?
Bitcoin’s rocky November has spilled over into December with a vengeance, dropping as low as $86,000 before a feeble rebound to $86,889.69 (+0.28% over the last 24 hours, according to CoinMarketCap). The world’s largest cryptocurrency by market cap – now at $1.73 trillion – is down a painful 31% from its October peak of $126,198.07, and the pain shows no signs of letting up. With the total crypto market cap slipping 0.15% to $2.94 trillion, Ethereum holding steady at $2,807.43 (+1.12%), and Bitcoin dominance climbing to 58.9%, the sector’s fragility is laid bare. This lingering volatility isn’t just bad news for crypto holders – it’s raising red flags for traditional stock markets too, as interconnected risks from yen carry trades and global liquidity drains threaten to pull everything down. As traders brace for what’s next, this analysis explores the root causes, live market data, and why Wall Street should be paying close attention.
The Stubborn Bitcoin Hangover: Why the November Pain Is Sticking Around
Bitcoin’s November was a bloodbath, shedding over 20% as ETF inflows slowed and macroeconomic jitters took hold. The pain persisted into early December, with BTC dipping below $86,000 on thin trading volume before scraping back to $86,889.69. CoinMarketCap data paints a picture of exhaustion: 24-hour trading volume stands at roughly $50 billion for BTC alone, a 2% drop from last week, while the circulating supply of 19.95 million coins (94.9% of the 21 million max) underscores the asset’s scarcity amid relentless selling pressure. This isn’t isolated – the total crypto market cap’s 0.15% daily decline to $2.94 trillion reflects broader risk aversion, with Ethereum’s modest +1.12% to $2,807.43 offering little relief.
The hangover stems from a toxic mix of factors: Overleveraged positions in crypto derivatives were liquidated in waves, wiping out $3.2 billion in the past week, while traditional markets grapple with the unwinding of the yen carry trade. As the Bank of Japan signals potential rate hikes to combat yen weakness, investors are forced to unwind cheap-yen loans used to fuel bets on high-risk assets like Bitcoin and tech stocks. “This raises questions about the unwinding of the yen carry trade, which would drain liquidity from the system,” said Matt Maley, chief market strategist at Miller Tabak + Co., in a recent note. The result? A feedback loop where crypto’s 24% dominance by Bitcoin amplifies the pain across the board.
Interconnected Risks: How Crypto’s Weakness Could Drag Down the Stock Market
Bitcoin doesn’t exist in a vacuum – its 58.9% dominance means its slumps ripple into equities, especially tech-heavy indices like the Nasdaq. Last week’s Dow Jones fell 427 points (0.9%), the S&P 500 shed 1.1%, and Nasdaq dropped 1.5%, mirroring crypto’s rout. The culprit? The yen carry trade unwind: Japanese investors borrowed cheap yen (near-zero rates) to pour into US stocks and Bitcoin, but with the Bank of Japan hinting at normalization, those positions are unraveling fast.
This liquidity crunch could spell trouble for Wall Street. “Markets are not out of the woods quite yet,” Maley warned, noting that a full yen reversal might trigger a 5-10% broader market pullback. Crypto’s role? As a high-beta asset, BTC’s 31% drop from highs acts as an early warning for risk appetite – and with $25 billion in spot ETF inflows stalling, institutions are rotating out of speculative plays. Ethereum’s +1.12% resilience at $2,807.43 offers a glimmer, but its $27.7 billion volume (up 23% WoW) can’t offset the sector’s drag.
Live Market Data: The Numbers Behind The Persistent Slump
CoinMarketCap’s real-time snapshot (Dec 2, 2025) reveals the fragility:
- Bitcoin Price: $86,889.69 (+0.28% 24h; Low: $86,200; High: $87,325)
- Ethereum Price: $2,807.43 (+1.12% 24h; Low: $2,793; High: $2,817)
- Total Market Cap: $2.94T (-0.15% 24h)
- Bitcoin Dominance: 58.9% (up 0.5%, squeezing alts)
- 24h Crypto Volume: ~$150B (BTC $50B, ETH $27.7B; down 1% overall)
The +0.28% BTC tick masks weakness – volume’s thinning, and Ethereum’s outperformance hints at rotation, but neither can ignore the yen’s shadow.
Risks And Rewards: $1T Slump Or Bottom Bargain?
Risks: Another 10-20% drop if yen unwind accelerates, with December’s thin volume worsening the pain. Rewards: Crash veterans score 120% rebounds (2023 data) – $100K BTC/$3,500 ETH if liquidity floods back.
Conclusion: Crypto’s Edge Persists – Liquidity Crunch Could Drag Stocks Too
At $86,889.69 BTC and $2,807.43 ETH with $2.94T total cap, crypto’s persistent slump from November is a warning shot for stocks. The yen carry trade unwind and tariff fears have drained $1 trillion in hours, with Extreme Fear reigning. But as Maley says, “Markets are not out of the woods quite yet” – the rebound could be massive for the prepared.
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