Key Takeaways

• Top story: Bitcoin falls 6% to $85,000, erasing all 2025 gains and raising questions about short-term resilience.
• US Bitcoin ETFs record $3.5 billion in outflows for November, indicating shifting investor sentiment.
• Fed rate cut odds reach 88%. This could provide new momentum for digital assets if confirmed.
• Retail stocks rise 6% as strong consumer spending offsets concerns elsewhere.
• What to watch: Investors await the next Federal Reserve meeting for policy clarity, which may influence confidence in the crypto market.

Introduction

On 4 December 2025, Bitcoin leads the crypto market press review by dropping 6% to $85,000, erasing all its gains for the year. Broader pressures affect digital assets, while significant outflows from US Bitcoin ETFs in November highlight changing investor sentiment. Economic policy developments and strong retail sector performance shape the day’s landscape.

Top Story

Bitcoin fell nearly 6% in the past 24 hours, dropping to $85,000 and erasing its 2025 gains amid broad market uncertainty. The flagship cryptocurrency had reached a high of $92,000 in October before entering a downward trend.

The sell-off intensified after Federal Reserve officials suggested that interest rates could remain elevated longer than expected. This marks Bitcoin’s largest single-day drop since July 2025.

Trading volumes increased to $42 billion across major exchanges, signaling significant liquidation of leveraged positions. Glassnode analysts reported that approximately $830 million in long positions were liquidated during the decline.

Trading volumes increased to $42 billion across major exchanges, signaling significant liquidation of leveraged positions. Glassnode analysts reported that approximately $830 million in long positions were liquidated during the decline.

Also Today

Crypto Markets and Policy

SEC Approves Additional Spot Ethereum ETFs

The Securities and Exchange Commission approved three additional spot Ethereum ETFs on 3 December 2025. This expansion increases investor access to the second-largest cryptocurrency by market capitalization. BlackRock, Fidelity, and Invesco received authorization to launch Ethereum-based products in early January 2026.

SEC Chair Gary Gensler stated that the approvals reflect the agency’s ongoing commitment to fostering innovation within appropriate regulatory frameworks. The new products join existing Ethereum ETFs, which have accumulated over $9 billion in assets since their initial approval in May.

Industry observers stated that these new offerings further legitimize cryptocurrency investments for institutional clients. Cathie Wood, CEO of Ark Invest, described this as another milestone in the development of digital assets as an asset class.

Japan Finalizes CBDC Framework

The Bank of Japan finalized its central bank digital currency (CBDC) framework, announcing a limited pilot program set to begin in February 2026. The digital yen will first be tested among 50,000 citizens in Tokyo and Osaka.

The framework prioritizes privacy protections while maintaining anti-money laundering compliance. Governor Haruhiko Kuroda confirmed that the digital yen will operate alongside cash, not replace it.

Major Japanese retailers, including Seven & i Holdings (7-Eleven) and Rakuten, have agreed to participate in the pilot. Japan joins China and the Eurozone among the leaders in CBDC development.

Consumer and Retail Trends

Major Retailers Expand Crypto Payment Options

Walmart and Target announced expanded cryptocurrency payment options across all US locations ahead of the holiday shopping season. Both retailers will accept Bitcoin, Ethereum, and several stablecoins via payment processor partnerships with BitPay and Flexa.

John Furner, Walmart U.S. CEO, stated that customer interest in digital currencies for everyday purchases has grown. The rollout includes point-of-sale integration and employee training.

Pilot data revealed that cryptocurrency payments accounted for about 3% of total transactions, with higher adoption rates among younger shoppers. This move in mainstream retail marks a significant step toward everyday utility for digital assets.

Adoption rates among younger shoppers have led to a significant step toward everyday utility for digital assets.

NFT Market Shows Signs of Recovery

The non-fungible token (NFT) market showed modest recovery in November. Trading volumes rose 28% month-over-month to $580 million, the highest monthly figure since April 2025, according to DappRadar.

Growth was driven mainly by gaming and metaverse applications rather than collectibles. Projects integrating NFT ownership with practical use in gaming ecosystems saw especially strong momentum.

Yat Siu, co-founder of Animoca Brands, stated that the market is shifting from speculation to utility. Several major gaming studios, such as Ubisoft and Epic Games, have announced blockchain-integrated titles for release in 2026.

Market Wrap

Crypto Sector Performance

The broader cryptocurrency market followed Bitcoin’s decline, with total market capitalization down 4.8% to $1.95 trillion. Ethereum fell 5.3% to $2,950, while Solana and Cardano dropped 7.2% and 6.5% respectively.

Some decentralized finance (DeFi) tokens outperformed, including Aave with a 3.2% gain and Compound up 2.8%. The total value locked in DeFi protocols remained stable at $85 billion amid market volatility.

Market volatility often leads participants to seek stablecoins, and this period saw stablecoins with USDT’s market dominance rising to 5.9% of the total crypto market as traders sought to minimize volatility.

Traditional Markets Context

Traditional equity markets diverged from crypto assets. The S&P 500 rose 0.7% and the Nasdaq gained 1.2%. Technology stocks performed well following strong earnings from major companies.

Treasury yields inched higher, with the 10-year note reaching 3.65%. The dollar index strengthened by 0.4%, adding pressure to dollar-denominated assets including cryptocurrencies.

Gold remained steady at $2,630 per ounce, continuing its role as a traditional safe-haven asset during digital asset volatility.

What to Watch

• Federal Reserve monetary policy meeting on 10 to 11 December 2025
• US Consumer Price Index data release on 12 December 2025
• Coinbase Q4 2025 earnings call on 15 December 2025
• EU Digital Markets Act crypto provisions implementation deadline on 20 December 2025
• Ethereum Shanghai upgrade scheduled for 22 December 2025

Conclusion

Bitcoin’s 6% decline and major ETF outflows underscore ongoing vulnerability in the crypto market, reflecting its sensitivity to US monetary policy even as traditional equities advance. Broader adoption in retail and ETF approvals point to continued structural change despite pronounced volatility. Looking ahead, the upcoming Federal Reserve policy meeting and key regulatory and technology milestones in December will help define the near-term outlook for the crypto market.

Trading strategies and psychological resilience will be crucial as volatility and policy uncertainty continue to shape investor decision-making.

Technical analysis is increasingly valuable for participants seeking to interpret rapid market shifts during periods of high volatility.