Bitcoin News Today: Tether Fears and Corporate Bitcoin Sales Spark $638M Crypto Liquidation Wave

The crypto market experienced a sharp sell-off on December 1, 2025, as global liquidations surged to $638 million in the 24-hour period, driven by fears over Tether's stability, potential Bitcoin sales by major holders, and regulatory pressures. Bitcoin (BTC) fell 5% to $86,800, erasing $144 billion from the total crypto market capitalization, while altcoins like Ethereum (ETH) and XRP dropped 5.6% and 6.5%, respectively according to CoinGlass data. The collapse was fueled by leveraged long positions, which accounted for $568 million of the total liquidations, according to CoinGlass data according to CoinGlass data.

The sell-off was exacerbated by statements from MicroStrategy CEO Phong Le, who hinted at potential Bitcoin sales to fund dividend payments. MicroStrategy's Bitcoin holdings, valued at $56.26 billion, created immediate market anxiety, even though prediction markets like Myriad assigned only a 5% chance of any pre-year-end sales according to data. SynFutures COO Wenny Cai noted that such conditional remarks "spark fear by altering perceived supply dynamics," triggering a cascade of liquidations that amplified volatility across spot and derivatives markets according to analysis.

Tether, the issuer of the largest stablecoin USDT, also came under scrutiny. BitMEX co-founder Arthur Hayes warned that a 30% decline in Bitcoin and gold prices could render Tether insolvent, citing its exposure to these assets according to analysis. This raised concerns about liquidity and margin requirements, further tightening market conditions. Regulatory pressures added to the bearish sentiment, with China's central bank reiterating its stance against cryptocurrency activities and stablecoin risks according to reports.

The broader market impact was severe. GeekStake reported a 4.82% drop in total crypto capitalization to $2.94 trillion, with altcoins like Cardano (ADA) and Solana (SOL) falling over 10% as leveraged positions unwound according to data. Coinglass data highlighted $153 million in liquidations within a single hour, with long positions dominating the losses . XRP, for instance, saw a 92% surge in trading volume amid a 6.74% price drop, reflecting thin liquidity and macroeconomic uncertainties .

Experts remain cautious about near-term recovery. Cai emphasized that December trading is likely to remain choppy, with long-term buyers potentially stepping in post-washout. Prediction markets show a 12% probability of a prolonged crypto winter, but immediate pressures from corporate selling and stablecoin fears persist according to analysis. Meanwhile, regulatory clarity and macroeconomic stability will be critical for sustained recovery.