Bitcoin's Bear Market Worsens as December Begins
New York, Tuesday, 2 December 2025.
Bitcoin has plunged over 30% from its peak, mirroring tech stock declines and fueling investor uncertainty. Key indicators and market sentiment suggest further downside in the crypto market.
Market Sentiment and Key Indicators
As of December 2, 2025, Bitcoin’s price has fallen approximately 32% from its all-time high of around $126,200, recorded in early October 2025. This sharp decline has not only alarmed investors within the cryptocurrency market but is also reflective of a wider trend affecting tech stocks, which have similarly experienced downturns. The correlation between Bitcoin and tech stocks has become increasingly apparent as both sectors are witnessing synchronized sell-offs. This trend is exacerbated by a risk-off sentiment that dominates the market, as highlighted by both the CNN Fear and Greed Index and the Coin Market Cap’s Crypto Fear and Greed Index, which are currently at bearish levels [1][2].
Macro Factors and Institutional Influence
Institutional investors and global macroeconomic trends are playing a significant role in the current crypto bear market. Comments from an official at the Bank of Japan on potential interest rate hikes have added pressure on crypto and other risk assets, contributing to the overall market’s bearish mood. This comes alongside a substantial decline in market liquidity, with Bitcoin’s market depth dropping from $766.4 million in early October to $568.7 million by the end of last week. Such conditions have intensified the market’s vulnerability to macroeconomic shocks, as noted by analysts [1][2].
The Impact of Technical Indicators
Technical indicators further support the bearish narrative, with Bitcoin’s monthly MACD histogram flashing red, a signal historically associated with prolonged downturns. The MACD indicator transitioned from bullish to bearish in November 2025, with prices falling over 17% during that month alone. This technical shift suggests traders should prepare for continued downside volatility, with potential support levels identified near $84,500 and further lows possibly extending to $70,000 [2][3].
Looking Ahead: Predictions and Implications
Market analysts and experts forecast a challenging road ahead for Bitcoin and the wider cryptocurrency market. With influential entities like MicroStrategy considering selling portions of their Bitcoin holdings under certain conditions, the market could experience further downward pressure. Analysts estimate that if the bearish trend persists, Bitcoin’s price could potentially reach as low as $60,000. This scenario is compounded by macroeconomic uncertainties and the evolving sentiment among institutional investors, which could shape the crypto market’s trajectory in the weeks and months to come [1][2].