why Bitcoin price BTC USD down today: Why Bitcoin price (BTC USD) crashed today: December crypto market sell-off reasons explained
Bitcoin Price USD Today Crashes in December’s First Trading Day
Bitcoin (BTC) dropped about 5%, trading around $86,600, down from roughly $111,000 at the start of November, a 21% decline in just 30 days, as per a Fast Company report.
Ethereum, XRP, Solana, and Dogecoin Also Fall Today
Ethereum (ETH) fell 5.5% for the day, bringing its monthly losses to over 26%. XRP dropped 6.8%, BNB fell 5.9%, and Solana (SOL) declined 6.8%, with Solana losing more than 31% over the past month. Meme coin Dogecoin (DOGE) was down 8% today and more than 26% over the past 30 days.
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Bitcoin Price Today Drop Reason: Federal Reserve Uncertainty Influences Crypto Prices
There isn’t a single event causing the drop. Analysts point to several factors likely influencing the market. One major factor is uncertainty surrounding the Federal Reserve’s upcoming interest rate decision on December 9–10.
While a rate cut is generally positive for cryptocurrencies, boosting liquidity and encouraging risk-taking, markets are currently pricing in an 83% chance of a 25-basis-point cut. If the Fed doesn’t lower rates, the lack of increased liquidity could keep pressure on crypto prices.
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BTC USD Price Decline Reason: AI Stock Volatility Impacts Crypto Investors
Investor sentiment in the stock market may also be contributing. Shares of AI-focused companies such as Nvidia (NVDA) and Microsoft (MSFT) fell nearly 12% and more than 9%, respectively, over the past month, as per the Fast Company report. Many high-risk investors in AI stocks are also cryptocurrency investors. When one high-risk asset drops, investors often sell others to limit losses, adding pressure on the crypto market.
Bitcoin Price USD Down Today Reason: Other Factors Contributing to Crypto Market Drop
Additional factors include warnings from the People’s Bank of China about illegal activity in digital tokens, which negatively affected related stocks on the Hong Kong market. Early Monday trading also saw forced liquidations in crypto markets as traders failed to meet margin requirements, further pushing prices down.
Mixed Performance for Cryptocurrencies in 2025
2025 began with optimism for digital assets, fueled by expectations of crypto-friendly policies under the Trump administration. Bitcoin even reached an all-time high above $126,000. But since then, the market has cooled.
Bitcoin has lost about 7.24% of its 2025 opening value. Ethereum is down 14.6%, Solana has dropped 32%, and Dogecoin is down 26% for the year. BNB remains one of the few bright spots, rising nearly 18% so far in 2025.
FAQs
Why did Bitcoin price drop today?
Market sentiment turned negative, and cryptocurrencies faced broad selling pressure.
Did stock market trends influence crypto declines?
Yes, falling shares of AI-focused stocks like Nvidia and Microsoft affected high-risk investors.
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