December off to a bad start with a 7% drop for Bitcoin

The brief rally we saw last week was almost completely wiped out on the first day of December with Bitcoin’s 7% drop. Investors hoping for a “buy the dip” effect were almost nonexistent, while analysts agree that the $80,000 level is the next target to mogically focus on.

Central banks

Two central banks were to blame for Monday’s collapse. First, the US Federal Reserve, which has yet to clarify whether or not it will lower interest rates in December.

Performance in 2025:

Gold: +60%
Bitcoin: -10% pic.twitter.com/CF2jwORLEx

— Brew Markets (@brewmarkets) December 1, 2025

The second was the Japanese central bank, which made it clear that an interest rate hike is imminent. This caused a decline in the Japanese stock market on Monday and let the value of the yen surge (it also caused Bitcoin’s price to drop further as the yen-carry trade becomes less attractive again).

investors is unwinding the yen carry trade strategy

as bank of japan increase the interest rate lately, the loans getting bigger

they sell-off their btc, creating panic sell and the price drops

the candles look emotional, but the behavior is mechanical. pic.twitter.com/WCQA0ibEI8

— Operator (@0xOperator) December 1, 2025

December

After a drop of around 17% in November, Bitcoin is starting December with another decline, a rather large one this time. The crypto market has been struggling for a while since reaching a new record high of $126,000 in early October.

Analysts believe the next decline will be excruciatingly slow, but could last until the $60,000 level, where many buyers are positioned.

If that proves true, we have a very difficult December ahead of us.