Bitcoin Drops Below $88,000 Amid Weak ETF Inflows
- Bitcoin BTC +6.86% surges past $88,000 momentarily, then declines sharply.
- Weak ETF inflows intensify market uncertainty.
- Significant impact across major cryptocurrencies and market capitalization.
Bitcoin briefly reclaimed $88,000 before dropping again due to renewed risk-off sentiment and weak ETF inflows at the start of December 2025.
The decline signifies market caution and highlights potential instability in the crypto space with impacted assets at risk.
Bitcoin Price Fluctuation December 2025
Bitcoin prices surged above $88,000 but quickly fell back due to prevalent risk-off sentiment. Initial optimism OP +10.97% waned as weak exchange-traded fund influxes signaled reluctance from investors.
Leading expert Sean McNulty highlighted the absence of dip buyers and emphasized the pressure on Bitcoin, pointing out $80,000 as crucial support. The event triggers concerns among stakeholders over investor sentiment.
The abrupt decline led to significant liquidations, erasing over $300 million in leveraged positions. This primarily affected holders of Bitcoin and Ethereum, marking a profound impact on major crypto assets.
The broader market suffered, with its total capitalization decreasing by nearly 4.4%. This reflects a liquidity shift as selling pressure continues to upset market balances and trading volumes. “It’s a risk-off start to December. The biggest concern is the meagre inflows into Bitcoin exchange-traded funds and the absence of dip buyers.”
Similar patterns were seen in October’s downturn when a market correction followed an all-time high. The current scenario is viewed as a temporary leverage flush-out by market analysts.
Considering past sell-offs and the present dynamics, potential outcomes include financial fallout and regulatory speculation. Historical precedents suggest market stabilization might occur once leverage unwinds, restoring equilibrium.
