Crypto Market Update – 6 December 2025

The crypto market on 6 December 2025 entered a phase of increased volatility, weakening momentum, and rapid sentiment shifts. Bitcoin is struggling to reclaim upward direction, Ethereum is under continued pressure, and altcoins remain the weakest segment of the market. Liquidity conditions, trader psychology, regulatory discussions, and institutional positioning are all playing pivotal roles.

This DropFinder report offers a complete breakdown of everything shaping the crypto landscape today.

1. Bitcoin – Losing Short-Term Steam but Retaining Long-Term Strength

Bitcoin hovered near $89,500–$90,000, reflecting a pullback of nearly 1.9% in the last 24 hours. The recent downturn is largely tied to market-wide liquidations and a slowdown in aggressive accumulation.

1.1 Bitcoin Price Behavior

• High around $91,300

• Low around $88,300

• 24h trend: mild decline

• Momentum: weakening

Order books show reduced buying activity at higher levels, indicating hesitation among both traders and long-term holders for short-term moves.

1.2 Why Bitcoin Is Facing Pressure

• Liquidation Chains

A wave of forced sell-offs erased leveraged long positions, pushing price downward and triggering more liquidations.

• Uncertain Macro Conditions

Interest rate signals, commodity volatility, and fluctuating liquidity are causing risk assets to behave defensively.

• Institutional Caution

Large trading desks, asset managers, and funds are temporarily scaling back fast-paced buying, focusing instead on accumulation during deeper corrections.

• Negative Investor Commentary

Several influential investors publicly questioned Bitcoin’s valuation, shaking confidence among less experienced market participants.

Still, Bitcoin remains the strongest asset in the crypto ecosystem and continues to attract long-term strategic capital.

2. Ethereum – Under Heavy Pressure as Demand Softens

Ethereum is trading around $3,030, marking a near 3% 24-hour decline. After months of fluctuating performance, ETH remains stuck in a zone where buyers and sellers show equal strength.

2.1 Ethereum Market Observations

• High touching $3,149

• Low reaching $2,993

• Momentum trending sideways

• Volume decreasing in several major ecosystems

2.2 Why ETH Is Struggling

• Cooling DeFi Activity

Liquidity in DeFi protocols has been gradually decreasing, reducing demand for ETH in staking, lending, and liquidity pools.

• Layer-2 Traffic Not Translating Into Strong Price

Even though networks continue scaling, the transactional growth is not matching earlier levels.

• Lower Demand from Large Investors

ETH is often seen as more complex to value, leading to slower accumulation from larger financial players during volatile periods.

• Short-Term User Caution

User engagement is posting modest declines as traders focus on stable assets.

Despite these pressures, Ethereum remains the leading settlement and smart contract ecosystem, and long-term fundamentals stay intact.

3. Altcoins – Entering High-Risk Territory

Altcoins remain the weakest performers in the market. A significant portion of tokens have suffered large corrections over the last weeks, with many losing more than half their value.

3.1 Altcoin Market Tone

• Selling pressure increasing

• Order-book depth decreasing

• Retail participation dropping

• Developer activity stable but investor engagement weak

3.2 Why Altcoins Are Falling Hard

• Reduced Liquidity

Capital is shifting toward Bitcoin, Ethereum, and stablecoins, leaving altcoins exposed.

• High Leverage Leading to Bigger Crashes

Many tokens with aggressive futures markets experience amplified drops during liquidation events.

• Lack of Strong Narratives

No single theme such as AI, gaming, or tokenization is pushing markets into a new cycle.

• Lower User Activity

In uncertain markets, users and traders typically avoid volatile assets.

This phase is typical of late-cycle corrections, where capital concentrates into the strongest assets before rotating again.

4. Market Has Corrected by Over $1 Trillion Since Recent Highs

The crypto market has lost more than $1 trillion in value over the past several months. The reduction is significant but follows a repeated pattern seen after strong rallies.

4.1 Key Factors Contributing to the Decline

• Liquidity Tightening

Reduced availability of capital impacts risk assets first.

• Reduced Retail Participation

Search trends, app sign-ups, and exchange volumes show fewer new users participating compared to earlier bullish phases.

• Heavy Derivatives Exposure

Futures markets continue influencing short-term price behavior more than spot demand.

• Exhaustion After Multiple Rallies

Large gains in early and mid-2025 resulted in profit-taking and slowing momentum.

Corrections of this scale often clear the excess from markets and help prepare for healthier cycles.

5. Strength Beneath the Surface – Hidden Bullish Indicators

Even though markets remain uncertain, several strong signals suggest long-term strengthening.

• Increased Accumulation from Major Entities

Asset managers, private funds, and corporations continue accumulating strategic amounts of Bitcoin for long-term holding.

• Expansion of Blockchain Use Cases

Sectors such as finance, logistics, healthcare, and identity management continue adopting blockchain technology at increasing rates.

• Growing Stablecoin Usage

Stablecoins are becoming essential for payments, digital commerce, and capital movement.

These signals often become visible long before token prices recover.

6. Risks Traders Must Be Careful About

6.1 Liquidation-Driven Volatility

High leverage levels across exchanges remain a potential trigger for sudden drops.

6.2 Policy Changes and Regulation

Taxation debates, exchange licensing rules, and stablecoin frameworks may influence trader behavior.

6.3 Short-Term Weakness in Altcoins

Tokens with low liquidity can witness sudden, sharp declines.

6.4 Overconfidence in Quick Reversals

Markets often take longer than expected to stabilize after large corrections.

7. Potential Outlook for 2026

Scenario 1: Sideways Consolidation

Bitcoin and Ethereum stabilize within a moderate range, leading to gradual accumulation.

Scenario 2: Strong Rally

Improved economic data, stronger institutional inflow, and reduced volatility could trigger a new bullish phase.

Scenario 3: Further Correction

If liquidity decreases further, markets may test lower support zones before recovery.

Markets typically move through such phases before entering strong upward cycles.

Final DropFinder Take

The current market environment is defined by correction, recalibration, and preparation for future growth. Bitcoin and Ethereum remain the strongest assets, while altcoins are still in a vulnerable state. Users focusing on long-term fundamentals, disciplined accumulation, and risk management stand to benefit most from this period.

This phase sets the foundation for what could become a major shift in 2026.