Crypto market bear run continues, Bitcoin shed 33% since October record high, Ethereum down 36% — what’s ahead?

Bitcoin hit an all-time record high over 126,000 levels in October and has since been a nearly two-month bear run, down 33%. The broader crypto market is also down below $3 trillion market capitalisation and second largest token, Ethereum shedding 36% in the same period.

Riya Sehgal, Research Analyst at Delta Exchange told Mint the downturn followed a volatile weekend that saw over $500 million in liquidations, leaving sentiment fragile and risk appetite subdued.

According to an AP report, the crypto sell-off largely tracks market fears over a bubble in artificial intelligence (AI) led technology stocks, and increased caution in the markets, where riskier assets are first to get the boot.

Nischal Shetty, Founder at WazirX said the tipping point was the BoJ hinting at a potential rate hike, adding that experts note this shift is “pulling liquidity out of global markets, tightening financial conditions at a moment when risk assets were already unpopular”.

Bitcoin price today: Maintains $86,000 levels, but gloom persists

During US market hours, the market saw wide-ranging sell-off in leveraged crypto positions, with around $1 billion bets liquidated. The world’s largest token briefly slumped 8% to $83,824 in New York, according to a Bloomberg report. It recovered to $86,719.13 by Asia market time

Through the day, Bitcoin has slid 0.35% to 86,502.95 at 2.20 pm on 2 December, CoinMarketCap data showed. Since it hit peak record on 6 October, the token has dived 33%, AP reported, citing Coinbase data.

Shetty noted that market sentiment is cautious for Bitcoin and that experts projecting capital retreats moving towards safer, income-generating positions, this could further dip the sentiment scale towards Fear.

It’s not only the token investors have also withdrawn around $3.6 billion from Bitcoin exchange-traded funds (ETFs) in November — the largest monthly pullout since it began trading in January 2024, the AP report added.

Over the past month, Bitcoin futures have falled close to 24%, compared to safe haven gold, where futures have jumped nearly 7%, it said.

According to Sehgal, as Bitcoin continues to hover below the $89,000 mark after failing to reclaim $90,000, key short-term support is with buyers defending the $84,000–$83,500 zone.

Crypto market sell-off: Ethereum, smaller tokens take hit

Besides the big name, second largest token Ether dropped 10% to $2,719 in US trade overnight, before settling at 2,797.84 (still down 1.45%) till afternoon on 2 December. It is down 36% since October, as per the Bloomberg report.

“Ethereum is stabilising near $2,800 after briefly dipping to $2,700. Altcoins remain under pressure, with most major tokens recording 5–10% weekly losses amid thin liquidity and reduced speculative activity. Looking ahead, the broader trend will likely depend on macro cues, particularly US inflation data and Fed rate expectations,” Sehgal added.

CoinDCX research team noted minimal recovery among other altcoins like XRP, while Solana, DOGE, LTC, and ADA remain consolidated below their respective broken support. Notably, index tracker MarketVector found that the bottom half of the largest 100 digital assets is down almost 70% in 2025.

What’s ahead for Bitcoin, Ethereum, cryptos?

Shetty is optimistic about Ethereum, “The consolidation and correction phase shouldn’t deter the market from key events such as Ethereum’s Fusaka upgrade to improve transaction output on its layer 2 chains. This will create a resilient ecosystem for Ethereum based projects. Grayscale converting its Chainlink Trust to an ETF, as a part of its move to convert single asset trusts, has further boosted optimism for the long term, and signifies a futuristic approach to provide regulated token access to investors with sufficient liquidity. Activity wise, the week has already seen some key developments which overshadows any temporary setback.”

Avinash Shekhar, Co-founder, and CEO of Pi42 concurred, “Ethereum’s futures volume surge and selective altcoin resilience show that pockets of conviction still exist beneath the broader stress.”

On Bitcoin, as per CoinSwitch Markets Desk, “if Bitcoin price holds above the $85,500 levels, momentum could build toward $87,500-88,000 level, the next resistance zone. A clean break above this level may open a move toward $89,000–$90,000. Investors can follow macro drivers closely, especially shifting Fed expectations.”

Shekhar added, “Bitcoin is moving through a heavy liquidity pocket because renewed rate hike signals have pushed investors back into defensive positions. The drop below $86,000 reminded everyone that macro is driving this cycle even though on chain metrics are flashing patterns that once preceded strong rallies. If global risk stabilises and flows begin to normalise volatility could flip to the upside but until then the market will remain sensitive to policy cues and shallow order books.”

Raj Karkara, COO of ZebPay also believes the downward trends reflect temporary caution and not a fundamental change in Bitcoin’s long-term outlook. “Short-term volatility may continue, and dips below recent ranges cannot be completely ruled out. However, several on-chain metrics, including long-term holding behaviour, supply illiquidity, and sustained institutional participation, indicate that underlying conviction remains strong,” he said.

“Periods like this reinforce the importance of discipline, diversification, and a long-term outlook. Investors should avoid reacting to short-term fluctuations and instead align allocations with their risk tolerance and broader financial goals,” Karkara advised.