{"id":45668,"date":"2025-12-02T11:35:08","date_gmt":"2025-12-02T11:35:08","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/02\/crypto-crash-will-bitcoin-and-altcoins-recover-in-december\/"},"modified":"2025-12-02T11:35:08","modified_gmt":"2025-12-02T11:35:08","slug":"crypto-crash-will-bitcoin-and-altcoins-recover-in-december","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/02\/crypto-crash-will-bitcoin-and-altcoins-recover-in-december\/","title":{"rendered":"Crypto crash: Will Bitcoin and altcoins recover in December?"},"content":{"rendered":"
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A crypto crash is happening this month, erasing billions of dollars in market capitalization from top coins like Bitcoin, Ethereum, Tron, Dogecoin, and Shiba Inu. This plunge is a continuation of what happened in November when Bitcoin and most altcoins fell. <\/p>\n

This article explores some of the top reasons why the crypto market crash is happening and whether the industry will recover.<\/p>\n

Crypto crash is happening as the industry face numerous headwinds <\/h2>\n

The ongoing crypto crash, which has caused investors over $1 billion in losses, has been triggered by numerous bearish headwinds.<\/p>\n

First, crypto prices are falling after S&P Global, a top rating agency, downgraded Tether, the biggest stablecoin company, to junk status.<\/p>\n

The company noted that Tether is a much more different company than other similar companies in the way it backs its stablecoin. Instead of holding cash and short-term investments, the company backs USDT by several assets like gold, Bitcoin, commercial paper, and loans.<\/p>\n

While this model has worked well from years, S&P Global believes that it puts Tether at risk if these asset prices plunge, claims that Tether has denied. The report said<\/a>:<\/p>\n

\n

\u201cA drop in the Bitcoin\u2019s value combined with a decline in value of other high-risk assets could therefore reduce coverage by reserves and lead to USDT being undercollateralized.\u201d<\/p>\n<\/blockquote>\n

Tether\u2019s downgrade is notable because of its role in the crypto industry. Data compiled by Artemis shows that there are $165 billion of USDT in circulation and 28 million holders. Also, the adjusted volume for USDT stood at over $1.3 trillion in the last 30 days.  As such, a collapse would be the biggest black swan event in the industry.<\/p>\n

Crypto liquidations rise as the Fear and Greed Index slips<\/h2>\n

The crypto crash also happened as liquidations rose to nearly $1 billion, reminding investors of what happened on October 10 when tokens worth over $20 billion were liquidated. <\/p>\n

Analysts believe the real number of liquidations is much higher than the reported one as exchanges don’t share all the data. According to CoinGlass, liquidations rose to over $800 million on Monday this week. Most people who were liquidated are those who bought cryptocurrencies last week, expecting the rebound to happen.<\/p>\n

The crypto market also crashed as a sense of fear spread in the industry. Data compiled by CoinMarketCap shows that the Crypto Fear and Greed Index remains in the fear zone of 16.<\/p>\n

This fear increased after Strategy’s CEO hinted that the company may decide to sell its Bitcoin holdings<\/a> to pay dividends if the mNAV dropped below 1. Such a drop is possible if Bitcoin and the MSTR stock price crash accelerate.<\/p>\n

In a bid to calm the markets after that statement, the company noted that it had $1.4 billion reserve to fund its dividend and interest payments.<\/p>\n

Why a crypto market rally is possible <\/h2>\n

Still, despite these challenges, there are reasons to believe that the crypto market recovery will happen this month.<\/p>\n

First, the Crypto Fear and Greed Index has moved to the extreme fear zone, a move that may trigger a rebound in the near term. In most cases, crypto market bull runs start whenever the sentiment is weak.<\/p>\n

Second, Bitcoin price remains above the important support level at $80,000, a sign that it may be slowly forming a double-bottom pattern, which is one of the most common bullish reversal patterns in technical analysis. In the case, chances of a rebound remain as long as the price is above that support level.<\/p>\n

Third, the industry may benefit from the upcoming interest rate cut by the Federal Reserve<\/a>. Economists and traders believe that the bank will cut interest rates on December 15, a move that will bring the benchmark rate to between 3.50% and 3.75%. A rate cut and the end of the two-year quantitative tightening process will boost crypto prices.<\/p>\n

The post Crypto crash: Will Bitcoin and altcoins recover in December?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

A crypto crash is happening this month, erasing billions of dollars in market capitalization from top coins like Bitcoin, Ethereum, Tron, Dogecoin, and Shiba Inu. This plunge is a continuation of what happened in November when Bitcoin and most altcoins fell.  This article explores some of the top reasons why the crypto market crash is <\/p>\n","protected":false},"author":1,"featured_media":45669,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-45668","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/45668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=45668"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/45668\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/45669"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=45668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=45668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=45668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}