December off to a bad start with a 7% drop for Bitcoin
Last Updated on 2 December 2025 by CryptoTips.eu
The brief rally we saw last week was almost completely wiped out on the first day of December with Bitcoin’s 7% drop. Investors hoping for a “buy the dip” effect were almost nonexistent, while analysts agree that the $80,000 level is the next target to mogically focus on.
Central banks
Two central banks were to blame for Monday’s collapse. First, the US Federal Reserve, which has yet to clarify whether or not it will lower interest rates in December.
Performance in 2025:
— Brew Markets (@brewmarkets) December 1, 2025
Gold: +60%
Bitcoin: -10% pic.twitter.com/CF2jwORLEx
The second was the Japanese central bank, which made it clear that an interest rate hike is imminent. This caused a decline in the Japanese stock market on Monday and let the value of the yen surge (it also caused Bitcoin’s price to drop further as the yen-carry trade becomes less attractive again).
investors is unwinding the yen carry trade strategy
— Operator (@0xOperator) December 1, 2025
as bank of japan increase the interest rate lately, the loans getting bigger
they sell-off their btc, creating panic sell and the price drops
the candles look emotional, but the behavior is mechanical. pic.twitter.com/WCQA0ibEI8
December
After a drop of around 17% in November, Bitcoin is starting December with another decline, a rather large one this time. The crypto market has been struggling for a while since reaching a new record high of $126,000 in early October.
Analysts believe the next decline will be excruciatingly slow, but could last until the $60,000 level, where many buyers are positioned.
If that proves true, we have a very difficult December ahead of us.
