Crypto prices today (Dec. 1): BTC, ETH, BNB, XRP slide amid thin liquidity and $600M in liquidations

Crypto prices today fell across the board on as thin liquidity, heavy leverage, and more than $600 million in liquidations drove a sharp market pullback.

The total crypto market cap dropped 5% to $3.04 trillion, extending last week’s weakness. Bitcoin slipped 5.2% to $86,238, while Ethereum declined 6% to $2,833. $BNB fell 5.5% to $828, and $XRP slid 7% to $2.05.

Several smaller altcoins were hit harder, with Monad down 22%, Zcash lower by 18%, and Hyperliquid sliding 13%. Sentiment also cooled further after the Crypto Fear & Greed Index dropped four points to 24, moving back into “Extreme Fear.”

CoinGlass data showed a sharp jump in liquidations, which rose 416% to $609 million through the day. Long positions accounted for $542 million of that total.

Leverage pressure deepens weekend volatility

A familiar mix of thin weekend liquidity and high leverage played a central role in the day’s decline. Low volumes during late Sunday and early Monday UTC hours often amplify small sell orders. Bitcoin lost about $4,000 within minutes overnight, despite no major news event.

Forced liquidations triggered a chain reaction across derivatives platforms. When initial long positions were wiped out, forced selling added more pressure, pushing prices lower and causing further liquidations.

A wave of profit-taking has added to that pressure. Long-time holders and funds have been locking in gains after the post-halving run. Roughly $800 billion in value has been cut from the market since October, setting a cautious tone heading into December.

Macro factors continue to weigh on risk appetite. Japan’s rising interest rates have weakened the yen carry trade, historically a major source of crypto leverage. At the same time, renewed anti-crypto rhetoric in China and new tax proposals in parts of Europe have added to uncertainty.

December outlook hinges on the Federal Reserve

The focus now turns to the mid-December window, with the Federal Reserve meeting on Dec. 10 shaping expectations for the rest of the month.

A softer policy outlook could ease pressure on risk assets and help Bitcoin move toward the $100,000 to $105,000 region. A tougher stance from the Fed would pull markets toward the lower end of the recent range and could open a path back toward the $80,000 zone.

Some industry voices argue that the market has become too pessimistic. Dragonfly managing partner Haseeb pointed to a wave of doubt that has spread across communities, where even established assets like $ETH and SOL are being written off.

He compared the current mood to the long period when Amazon faced early doubts, suggesting that investors often struggle to judge long-term compounding.

With Ethereum only a decade old, he views the current discomfort as part of a natural cycle. His view is that blockchain networks are still laying the foundations for a financial system that will grow more connected over time.

For now, traders are watching liquidity, positioning, and the upcoming macro signals that could decide whether December closes with a rebound or a deeper pullback.