Bitcoin’s sharp reversal and a surge in investor fears have forced even the market’s strongest champions to confront a bruising December downturn.
A broad-based crypto sell-off accelerated this week, wiping billions off the total market capitalisation and stoking fresh concerns about financial contagion both within the digital asset ecosystem and across adjacent markets.
Bitcoin slipped to about $84,000 (€72,328) during Monday trading before rebounding to near $87,000 later in the day. The cryptocurrency saw more dramatic lows earlier in November, despite a brief consolidation at the end of the month that pushed it over $90,000 — still well below the roughly $100,000 level it was trading at in early November and much lower than the October high of around $125,000.
The downturn has hit other major cryptocurrencies — known as altcoins — as well, with Ethereum trading at around $2,800 — a roughly 7% drop from $3,000 a week ago, and a steep fall from the near $4,800 levels seen in August.
As of early December 2025, the Crypto Fear & Greed Index — a widely followed gauge of crypto investor sentiment inspired by CNN’s Fear and Greed Index on other US stocks — remains in the “Extreme Fear” territory with a reading of 23/100, underscoring deep pessimism across the crypto market.
These indices reflect a composite snapshot of market mood, calculated daily by combining signals from six key metrics — including volatility, trading momentum and volume, social-media sentiment, coin dominance and Google search trends.
For much of this year, crypto investors had grown almost defiant in the face of repeated warnings that the Bitcoin bubble was due to burst, especially when each dip was followed by an even stronger rebound.
In March and April, Bitcoin saw sharp declines before returning to record-breaking highs of $120,000 (€103,394) in August and October.
The election of Donald Trump fuelled the belief that crypto’s momentum was politically protected — somewhat ironic for a digital currency originally invented to escape government-driven monetary systems. Confidence in the coins rose after Trump signed the GENIUS Act, the first US federal stablecoin regulation law, a move widely hailed as legitimising key parts of the crypto ecosystem.
But that confidence seemed to have evaporated in November, when a sharp reversal in Bitcoin’s fortunes began.
Strategy Inc, the world’s largest corporate holder of Bitcoin, moved on Monday to reassure investors rattled by December’s steep sell-off and announced a $1.44 billion (€1.24bn) cash reserve to help stabilise its balance sheet.
The company said the new US dollar reserve — funded through recent stock sales — will cover at least 12 months of dividend and interest payments, with the aim of eventually holding enough to cover 24 months.
“Establishing a USD Reserve to complement our BTC reserve marks the next step in our evolution, and we believe it will better position us to navigate short-term market volatility while delivering on our vision of being the world’s leading issuer of digital credit,” Michael Saylor, the founder and executive chairman of Strategy, said in a statement.
The announcement comes as Strategy quietly walks back its own earlier assumptions about Bitcoin’s trajectory, shifting its earlier earnings guidance for 2025 from an end-year Bitcoin price of $150,000 and lowering its price expectation to a more modest range of $85,000 to $110,000.
