Bitcoin News Today: Institutional Exodus and Macro Pressures Drive $1 Trillion Crypto Collapse

Bitcoin faced a turbulent start to December 2025, with prices tumbling below $87,000 amid a broader crypto market sell-off that erased over $1 trillion in value since October's peak. The cryptocurrency, which had surged to a record $126,210 in mid-October, now trades near 30% below its all-time high, reflecting a sharp reversal driven by waning institutional demand, macroeconomic pressures, and thin liquidity conditions. As of December 1, Bitcoin was priced at $86,828.87, down 5.2% in 24 hours, with further declines pushing it toward critical support levels near $83,500. The selloff triggered roughly $637 million in leveraged position liquidations over the weekend, exacerbating downward momentum as traders scrambled to cut losses according to GeekStake's market brief.

The decline marks the culmination of a difficult November, during which Bitcoin shed more than $18,000 and recorded its largest monthly outflows from U.S. exchange-traded funds (ETFs). Institutional investors, who had fueled much of the year's rally through allocations in Q1 and Q2, shifted to profit-taking and rebalancing in late 2025. BlackRock's IBIT alone lost $2.47 billion in November, while total ETF outflows hit $3.79 billion, surpassing February's record. This exodus removed a key pillar of support, leaving Bitcoin vulnerable to macroeconomic headwinds. Rising bond yields, Japan's interest rate hike, and tightening liquidity conditions in Asian markets compounded the pressure, with traders warning that the next few sessions would determine whether Bitcoin ends 2025 in positive territory.

Altcoins fared no better, with Ether (ETH) and Solana (SOL) each falling 5–7% in 24 hours, while XRP and smaller tokens saw steeper declines. Ethereum, which had already lost 22% in November, now trades below $2,840, more than 40% off its $4,953 peak in August. The broader market's fragility was underscored by heavy liquidations, with over $300 million in leveraged long positions unwound within hours as panic set in according to GeekStake's market brief.Analysts attributed the selloff to a combination of factors: macroeconomic uncertainty, strategic shifts by institutional holders, and thin trading volumes that amplified volatility.

Despite the bearish sentiment, some traders remain cautiously optimistic. Bitcoin's recent rebound to $87,500-supported by expectations of an imminent Federal Reserve rate cut-suggests a potential floor for the asset. The CME FedWatch tool priced in an 82% probability of a 25-basis-point cut, offering a glimmer of hope for bulls. Technical analysts noted that Bitcoin must reclaim key resistance levels, such as $93,000, to reverse its downward trend, while immediate support at $85,800 remains critical according to market analysis. Meanwhile, Ethereum's ability to hold above $2,600 will determine whether its multi-month decline continues or stabilizes according to market analysis.

The selloff has also sparked debate over Bitcoin's long-term fundamentals. While critics highlight the risks of a $120,000 recovery, proponents argue that the current dip presents a "massive opportunity" for investors to accumulate undervalued positions. Michaël van de Poppe, a crypto analyst, suggested that Bitcoin's bottom formation is still in progress, with Ethereum potentially outperforming once the floor is established. However, with macroeconomic headwinds persisting and liquidity conditions fragile, the path to a sustained rally remains uncertain.