ETH, SOL, and BNB plunged 10%, dragging the broader crypto market down more than 7%.
Bitcoin erased its weekend gains as crypto markets slid more than 7% on the first day of December after bearish moves across Asia wiped out over $200 billion in market capitalization.
As of press time, Bitcoin (BTC) is trading at $85,512, down 7% on the day.
Ethereum (ETH) is also under pressure, falling 10% to $2,730, extending its tight correlation with Bitcoin. All of the top 10 tokens by market value are deeply in the red, with DOGE suffering the steepest drop at nearly 12% over the past 24 hours.
On Monday, the Crypto Fear and Greed Index remained at extreme fear levels, with sentiment staying in the fear zone for weeks now.
Bitcoin Tests Support
Analysts at Glassnode noted in a Monday post on X that a new cost-basis cluster “formed after Bitcoin’s drop into the low-$80K region, showing fresh accumulation at these levels.” As the analysts explained, this zone is now “one of the densest on the heatmap and could act as a strong support area, likely to be defended by recent buyers.”
Singapore-based trading firm QCP Capital attributed the sudden selloff to a “string of bearish developments across Asia.” One factor was hawkish commentary from Bank of Japan (BoJ) Governor Kazuo Ueda, which pushed swap markets to price in higher odds of a rate hike. Japan’s two-year yield jumped to 1%, implying a 76% chance of a Dec. 19 BoJ hike.
At the same time, China recorded a contraction in non-manufacturing activity for the first time in nearly three years, fueling concerns that the region’s growth engine is stalling. Together, these signals raised doubts over whether global liquidity is actually loosening, “even as U.S. macro factors remain ostensibly supportive for crypto,” QCP said.
Big Movers and Liquidations
Among the Top 100 assets, the RAIN token is the only gainer, up nearly 11%.
On the downside, Zcash (ZEC) plunged 20%, followed by PUMP down 17% and ASTER down 15.7%.
Data from Coinglass shows that over the past 24 hours, the market liquidated over $954 million of leveraged positions. Longs accounted for $867 million, while shorts accounted for nearly $84 million. BTC led with $385 million in liquidations, followed by ETH at $228 million and altcoins at $83 million.
ETFs and Macro Conditions
Last week, spot Bitcoin ETFs saw $70 million in net inflows, bringing total net assets to $119.3 billion, per SoSoValue, which was the first positive week since late October. Meanwhile, spot Ethereum ETFs saw inflows of over $312 million, bringing net assets to $19.15 billion.
On the macro side, U.S. Treasury yields ticked higher on the first day of December as investors boosted their bets on a Fed rate cut this month, CNBC reported today.
Meanwhile, Japanese government bonds slipped, with the two-year yield hitting its highest level since 2008 after the Bank of Japan chief hinted at a December rate hike, Bloomberg reported.
The two-year rate, which reacts strongly to policy expectations, rose 3 basis points to 1.02%, with high-beta crypto taking the hit first and erasing most of the weekend’s gains in just a few hours.
