Cryptocurrency market review

5 dic 2025, 12:43:19

This week, most digital assets corrected sharply downward but then recovered their lost positions: the BTC token is trading around 92.200.00 (+1.2%), ETH is trading at 3170.00 (+4.8%), USDT is trading at 1.0002 (+0.03%), XRP is trading at 2.1000 (–4.1%), and BNB is trading at 900.00 (+1.3%). The total market capitalization at the end of the week was 3.14T, with BTC accounting for 58.7% of it, while the balance of Bitcoin ETFs decreased by 142.5M and Ethereum ETFs increased by 9.8M.

Experts do not have a consensus on the factor behind Monday’s sector weakness but many suggest that it was caused by technical reasons: the initial liquidation of several large positions led to a domino effect, resulting in a total decline of approximately 646.0M dollars, 90.0% of which was in long positions. Additionally, the crypto industry was pressured by the hack of the DeFi platform Yearn Finance: according to management reports, the attackers managed to withdraw 9.0M dollars in assets, and 1.0K ETH (about 3.0M) were transferred to the Tornado Cash currency mixing service. Meanwhile, over the weekend, representatives of the People’s Bank of China stated that virtual currencies do not have the same legal status as fiat currencies, are not legal tender, and cannot be used as currency on the market, noting that they will continue to consistently crack down on their use.

The recovery took place against monetary factors and growing expectations of a softening of the US Fed’s monetary policy at its December 10 meeting, supported by November employment data from Automatic Data Processing (ADP): a correction of –32.0K confirms the cooling of the labor market and indicates the need for support. In addition, the crypto community is positive about the likely appointment of White House economic adviser Kevin Hassett, nominated by President Donald Trump, as the new head of the US regulator. The official is considered a supporter of the digital industry, with a 1.0M dollars stake in Coinbase, and also advocates for lower interest rates, which would strengthen the position of alternative assets relative to the dollar. It is worth noting that the US Commodity Futures Trading Commission (CFTC) has approved the sale of spot cryptocurrency products on federally regulated futures exchanges: CFTC Acting Chair Caroline Pham said the move was in line with the recommendations of the presidential working group.

Despite the current growth, investor enthusiasm remains weak, as evidenced by the outflow of funds from leading digital investment exchange-traded funds (ETFs) and the fear and greed index remaining in the fear zone at 28: next week, most major cryptocurrencies may consolidate or resume their negative momentum.

Scenario

Timeframe

Weekly