OneBullEx Weekly Crypto Market Recap: December Shockwave of Bitcoin Meltdown Sparks Global Crypto Panic

The first full week of December began under intense pressure as the crypto market continued to reel from the late-November sell-off. Bitcoin entered December struggling to regain footing, falling to the mid-$80,000 range on December 1 to 2 before stabilizing near $87,000. This followed a brutal November that wiped out much of the year’s earlier rally and reintroduced extreme volatility across the space. Reuters noted that Bitcoin briefly fell below $90,000 as investors broadly exited risk assets, signalling a retreat driven not only by crypto specific concerns but by global macro stress and tightening financial conditions.

Ethereum mirrored this sharp decline, slipping below $2,800 a steep drop from late-summer highs. Market fear gauges plunged into “Extreme Fear,” reflecting widespread panic as investors grappled with the rapid erosion of crypto valuations. Even outside of crypto, traditional markets were under pressure.

Midweek: A Hesitant Attempt at Stability

By mid-week, December 3 to 4, the panic began to ease ever so slightly. Markets attempted stabilization as Bitcoin pulled itself back toward the low-to-mid-$90,000s in a short-lived relief bounce. Global markets showed slight improvement, with equities recovering modestly, and crypto followed suit. Ethereum and select altcoins also bounced from their lows, showing mild relative strength compared to the violent sell-off earlier in the week.

Analysts pointed out that the midweek recovery looked like early signs of capitulation: with many overleveraged positions flushed out, natural buyers began stepping in not aggressively, but cautiously. Technical traders noted that Bitcoin was hovering around a critical zone between $90,000 and $94,000, the same region that would dictate market direction for the remainder of the week. But despite this stabilization, sentiment remained fragile. Liquidity stayed thin. Volatility remained high.

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