Group 1 - The cryptocurrency market experienced a significant decline, with Bitcoin dropping below $87,000 for the first time since April 2025, and further falling to $83,786, marking an 8% decrease in a single day [2] - Ethereum also showed weakness, falling below $2,800 with a daily drop of 6.36%, while other cryptocurrencies like XRP, BNB, and Solana dropped over 6% [2] - Over the past 24 hours, more than 270,000 traders were liquidated in the cryptocurrency market, with a total liquidation amount of $985 million, including $870 million from long positions [2] Group 2 - The U.S. stock market saw all three major indices decline, with the Dow Jones down 0.89%, Nasdaq down 0.38%, and S&P 500 down 0.53%, particularly affected by the drop in cryptocurrency-related stocks [2] - The expectation of a December interest rate cut by the Federal Reserve has diminished, putting pressure on risk assets, including cryptocurrencies [3] - Since September, large investors have sold over $20 billion in cryptocurrency assets, indicating a trend of de-leveraging among retail investors [3] Group 3 - The structure of market participants is changing, with an increase in institutional funding, suggesting that future price movements will be more driven by fundamentals and data rather than short-term sentiment [3] - Analysts suggest that if Bitcoin remains below $100,000, it could trigger more aggressive sell-offs, with a potential target price near $74,000, indicating about 30% downside from current levels [3]

Core Viewpoint - The cryptocurrency market is experiencing significant declines, with Bitcoin dropping below $87,000 for the first time since April 2025, reflecting a broader trend of selling pressure in risk assets due to changing expectations around Federal Reserve interest rate policies [1][2][5]. Market Performance - Bitcoin's price fell sharply, reaching a low of $83,786, marking an 8% drop in a single day [1]. - As of December 2, Bitcoin was priced at $86,378, down 5%, while Ethereum fell below $2,800, down 6.36% [5]. - Other cryptocurrencies like XRP, BNB, and Solana also saw declines exceeding 6% [5]. - Over the past 24 hours, more than 270,000 traders were liquidated, with total liquidations amounting to $985 million, predominantly from long positions [5]. Market Trends - Since reaching a historical high of $126,250 in early October, Bitcoin has retraced over 30% in value, erasing all gains made in 2025 [5]. - The market has been under continuous selling pressure for several weeks, indicating a shift in investor sentiment [5]. Federal Reserve Impact - The expectation for a December interest rate cut by the Federal Reserve has diminished, leading to increased pressure on risk assets, including cryptocurrencies [2][6]. - Disagreements within the Federal Reserve regarding inflation have contributed to uncertainty about future monetary policy [2][6]. Institutional Dynamics - There has been a notable shift in market participant structure, with an increase in institutional investment, suggesting that future price movements will be more influenced by fundamentals and data rather than short-term sentiment [3][6]. - Since September, large investors have sold over $20 billion in crypto assets, indicating a trend of de-leveraging among retail investors [6]. Price Projections - Analysts suggest that if Bitcoin remains below $100,000, it could trigger further sell-offs, with a potential target price near $74,000, indicating about 30% downside risk from current levels [3][6].

Group 1 - The cryptocurrency market continues to weaken, extending a decline that has lasted over a month, with Bitcoin dropping over 4% and falling below $87,000 for the first time since April [1] - Large-scale selling by whales, based on the "four-year cycle theory," has led to over $20 billion in sell-offs since September, contributing to the current price decline [2] - The recent downturn in Bitcoin is closely linked to a significant "forced liquidation wave" in October, where over $19 billion in leveraged positions were liquidated, severely impacting market momentum and liquidity [2] Group 2 - The macroeconomic uncertainty is exacerbating market tension, with unclear Federal Reserve policy paths suppressing investor risk appetite, particularly in high-risk assets [3] - The options market is focusing on key support levels, with strong demand for protection around $85,000 and $82,000, indicating traders are preparing for further declines [2] - The cryptocurrency market is experiencing a "cross-asset divergence," with the volatility in the stock market, particularly related to AI valuations and Federal Reserve interest rate expectations, contrasting with the ongoing deleveraging and declining retail demand in the crypto space [2]