Why is Bitcoin dropping again today? Crypto markets start December with another worrisome sell-off

Core Insights - Cryptocurrency prices are experiencing significant declines as December begins, with major cryptocurrencies like Bitcoin, Ethereum, XRP, and Solana all seeing drops [1][2] Price Declines - Most major cryptocurrencies are down over the past 24 hours, with Bitcoin declining 21% over the last month from approximately $111,000 to just over $86,600 [3][4] - Ethereum has fallen by more than 26%, XRP by over 18%, BNB by more than 24%, and Solana by over 31% during the same period [4] Market Factors - The declines are attributed to multiple factors rather than a single event, with ongoing uncertainty regarding the Federal Reserve's interest rate decisions being a significant influence [5][6] - A potential cut in interest rates is generally favorable for cryptocurrencies, as it increases market liquidity and encourages risk-taking among investors [6][7] - If the Federal Reserve does not reduce rates, the anticipated increase in liquidity may not occur, negatively impacting investments in risk assets like cryptocurrencies [7]