The final stretch of November delivered one of the harshest corrections in the 2025 Crypto calendar. Broad-based sell-offs erased more than US$1 trillion in market value as Bitcoin, Ethereum, and a wide range of altcoins succumbed to tightening liquidity, souring macro sentiment, and relentless deleveraging. Ethereum shed over 20%, its weakest performance since early 2025, while Bitcoin closed November down 17.5%, a retracement that rattled market conviction, affecting all, from retail traders to institutional desks.
However, days later, the narrative shifted dramatically. By December 3, Bitcoin surged nearly 7%, vaulting back above $92,000, with the broader market recapturing over 7% in capitalization. The question became whether the performance signaled the beginning of a relief rally or a mere moment of calm in an otherwise turbulent landscape.
The inflection point came on December 1, when Yearn Finance reported an exploit within its yETH liquidity pool. Although core vaults remained secure, the timing could not have been worse.
In a market already weakened by a month of heavy selling, the Yearn exploit amplified concerns over DeFi’s structural security gaps, reigniting debates about code risk, governance fragility, and the limits of decentralization under stress. The incident reinforced a deeper truth: in Crypto, sentiment can fracture quickly, even when the fundamental damage is limited.
Although the exploit triggered immediate panic, the broader sell-off reflected deeper fractures across global markets.
This was not a Crypto-specific failure; it was a reflection of global capital flows retreating from risk. And in that sense, the tumult exposed how deeply Crypto markets now sit within the broader macro-financial architecture
The sharp early-December rebound did not emerge in isolation, but was driven by a series of market-moving developments:
Ethereum climbed more than 8% to $3,042, while altcoins, XRP, BNB, Solana, Dogecoin, Tron, Cardano, and Hyperliquid, recorded double-digit 24-hour gains. Despite the momentum, sentiment indicators showed that investors remain deeply cautious.
Bitcoin now tests upside resistance at $96,000, while key support sits at $87,800, a battleground range that will determine market direction heading into mid-December.
Altcoins presented a mixed but tactically important picture.
XRP: Under pressure but watching resistance closely. After its decline by 13% in November.
Yet XRP’s outlook remains highly sensitive to Bitcoin’s performance as it will struggle to climb where broader market sentiment deteriorates.
Ethereum (ETH): Signs of a bear trap
ETH’s steep pullback appears increasingly overstretched relative to its on-chain fundamentals. With declining sell pressure and improving flows, analysts suggest a potential bear trap reversal is developing, depending on ETH securing the $3,100–$3,200 zone.
Over the coming weeks, the following should be monitored:
Overall, the late-November crash was a stress test for an evolving but still fragile asset class. It exposed vulnerabilities, from DeFi security gaps to reliance on institutional liquidity, but also highlighted persistent demand during dislocations.
For investors, especially those with a long-term, fundamental-driven orientation, this environment offers selective opportunities amidst heightened volatility, with institutional flows wavering and macro uncertainty set to persist; disciplined risk management and careful asset selection remain critical.
Crypto’s December will not be defined by certainty, but by how investors position themselves within an increasingly complex, globally influenced market structure.
By: Sandra A. Aghaizu
Late November brought a hard crash…over a trillion dollars wiped out, Ethereum down 20%, Bitcoin slipping 17.5%. Fear ruled the market.
But by December 3, a small sunrise appeared: Bitcoin jumped nearly 7%, rising above $92,000, and the market clawed back some strength.
Now the question lingers…
Is this a real comeback, or just a calm breath before the storm returns?
