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

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Monday, Dec 1, 2025 8:28 am ET1min read
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- Crypto markets crashed on Dec 1, 2025, with $638M in 24-hour liquidations driven by

Tether
fears, corporate
Bitcoin
sales, and regulatory pressures.

- Bitcoin dropped 5% to $86,800, erasing $144B in market cap, while leveraged long positions accounted for $568M of total liquidations.

- MicroStrategy's $56.26B Bitcoin holdings and Tether's solvency risks triggered panic, despite low probability of pre-year-end sales per prediction markets.

- Regulatory warnings from China and liquidity concerns worsened conditions, with altcoins like

XRP
and
ADA
falling over 6-10% amid thin trading volumes.

- Experts caution prolonged volatility, noting 12% chance of crypto winter and ongoing risks from corporate selling and stablecoin instability.

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.