BTC and ETH Plummeted More Than 5%: Why Did the Crypto Market Crash Today (12/01/25)?

Jakarta, Pintu News – The crypto market is under heavy pressure again after the total market capitalization slipped below $3,000,000,000,000. This sharp decline sparked panic among market participants, especially as major assets such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) slumped at almost the same time.

The sudden volatility triggered massive liquidations, bringing back concerns about weak liquidity in the cryptocurrency sector over the weekend. This confirms that a market structure sensitive to selling pressure remains a key risk for both institutional and retail investors.

Selling Pressure Rocks Bitcoin, Ethereum, and XRP

Bitcoin (BTC) experienced a drastic drop to around $86,744 or around Rp1,445,073,000 after losing more than 4 percent in the last 24 hours. Bitcoin’s market capitalization now stands at around $1,730,000,000,000,000, while trading activity increased during the sell-off phase.

Ethereum (ETH) also weakened to around $2,841, extending its weekly correction by 5 percent. At the same time, Ripple (XRP) dropped to around $2.06 or Rp34,380 after recording a more than 6 percent decline in one week.

In addition to the three major assets, a number of major altcoins such as Binance Coin (BNB), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) were also under pressure. BNB dropped to $835 or Rp13,915,000 after losing about 4.4 percent during the week.

Solana (SOL) is trading near $127 or €2,118,000, recording a decline of more than 6 percent in seven days. Dogecoin (DOGE) was also under pressure at $0.1385 or about Rp2,310 after losing almost 7 percent in a week. Cardano (ADA) dropped to $0.3899 or around €6,500, losing 6 percent in the same period.

Read also: 2 Altcoins Predicted to Weaken in December 2025

Liquidation of Almost Rp6.6 Trillion Hits the Market

Market data shows that nearly $400,000,000 in leveraged long positions were liquidated in just one hour. This wave of liquidation occurred without any major news triggers, suggesting that the liquidity conditions of the crypto market are still very fragile.

Such movements are common throughout the year, especially on weekends or thin trading sessions. When markets are less liquid, small price movements can turn into aggressive drops in a matter of minutes.

In the latest incident, Bitcoin (BTC) plummeted by around $4,000 or Rp66,680,000 in just a few minutes due to a chain liquidation sequence. This is a common occurrence when the market is facing heavy selling pressure while the order book is unable to accommodate the trading volume.

The imbalance between sell and buy orders accelerated the correction and extended its impact to the entire cryptocurrency market. This phenomenon emphasizes the structural risks that have repeatedly emerged throughout 2025.

Also read: Bitcoin (BTC) Decline Prediction by Peter Schiff: Will December Be Gloomy?

Thin Liquidity is the Main Trigger

Analysts highlighted that liquidity was the biggest pressure point in the crypto market this period. Lower market maker activity over the weekend made order books thinner and sensitive to selling pressure.

When pressure builds, price spreads widen and volatility increases sharply, resulting in extreme price movements. This creates a vulnerable environment for even large-cap assets.

On the other hand, leverage in the futures market is also near an all-time high. When prices start to move down, highly leveraged positions can be triggered to liquidate. Each liquidation adds new selling pressure, creating a domino effect that drags prices down further. The leverage-dependent structure of the cryptocurrency market and thin liquidity are a combination that exacerbates market conditions.

Not Triggered by Fundamental Factors

Although the market drop feels significant, experts emphasize that there were no major fundamental factors that triggered the crash this time. No negative regulatory updates, major macroeconomic shocks, or crypto industry-specific events were the trigger.

This decline reflects more of a “liquidity flush” stemming from excessive leverage and thin trading conditions. Such situations often arise towards the weekend when trading volumes tend to be lower.

Analysts expect volatility to likely remain high until liquidity returns. Nonetheless, the market usually finds stability after a major liquidation phase subsides. Similar patterns have occurred several times throughout 2025, confirming that cryptocurrency markets are still heavily influenced by technical variables such as liquidity and leverage. Without structural changes, this pattern of stress will likely continue to repeat itself.

FAQ

What are the main reasons why the crypto market is falling today?

This decline was triggered by thin market liquidity and a wave of liquidation of leveraged long positions, not by any specific fundamental factor or negative news.

How much liquidation value occurred in the most recent incident?

Around $400 million or nearly IDR 6.6 trillion worth of long positions were liquidated in just one hour, exacerbating the selling pressure in the market.

Why did Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) experience simultaneous declines?

All three assets were impacted by the same selling pressure from an illiquid market, resulting in simultaneous price declines.

Are there any regulatory or macro factors that trigger volatility?

There were no major regulatory or macroeconomic developments that triggered the crash, so the movement this time was more technical in nature.

What is the outlook for the market in the next few days?

Volatility is expected to remain high until liquidity returns to normal, but stabilization usually occurs after the big liquidation wave subsides.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coinpedia. Why Bitcoin, Ethereum and XRP Are Suddenly Crashing Today. Accessed December 1, 2025
• Featured Image: Generated by AI