On December 5, 2025, the global cryptocurrency market cap declined 1.1% to $3.23 trillion, marking the second daily pullback after a week of gains. Broad-based selling saw 90 of the top 100 coins and nine of the top ten largest tokens lower on the day, driven by mixed U.S. labor data and growing uncertainty ahead of the September PCE inflation report scheduled later on Friday. Bitcoin led the descent, sliding 1.2% to $92,227, as traders eyed critical support in the $96,000–$106,000 range highlighted by on-chain analytics firm Glassnode; Ethereum followed, down 0.6% to $3,169 amid similar technical caution.
Macro factors underpinning the downturn include mixed U.S. labor market signals, where initial jobless claims fell to multi-year lows even as corporate layoffs rose to their highest levels since 2022. Markets anticipate the U.S. Bureau of Economic Analysis releasing September’s personal consumption expenditures data later in the day, which is expected to influence Federal Reserve policy. A forecast-implied 87% probability of a 25‐basis‐point rate cut in December leaves traders in a compressed-volatility setup, intensifying a “wait-and-see” approach among digital asset investors.
ETF flows also contributed to the market dynamics, with U.S. Bitcoin spot ETFs seeing $194.64 million in outflows on Thursday, while Ethereum ETFs recorded $41.75 million in net withdrawals. The outflows, driven primarily by large asset managers like BlackRock and Fidelity, have sapped short-term demand and added to selling pressure. Meanwhile, Woori Bank in Seoul began displaying real-time Bitcoin prices in its main dealing room, reflecting institutional acceptance even as volatility persists.
On-chain metrics paint a mixed picture: the True Market Mean cost basis anchor around $106,200 remains intact for dormant coins, but with over 25% of circulating supply underwater, a fragile equilibrium persists between seller exhaustion and potential capitulation. Without reclaiming the 0.85 quantile level, deep bearish phases could materialize, prompting further deleveraging. In anticipation of a sustained down-cycle, corporate holders like Strategy have earmarked a $1.44 billion USD liquidity buffer to manage risk, signaling strategic defensive positioning ahead of potential macro shocks.
Looking ahead, traders will monitor the U.S. PCE data and central bank communications for cues, while leveling events such as Bitcoin’s ability to hold $91,000 or rebound toward $96,500 will guide sentiment. With sentiment indicators like the Crypto Fear & Greed Index hovering near “fear” territory, short-term headwinds may prevail until a decisive macro pivot occurs or ETF flows normalize. Market participants remain poised for rapid directional shifts, underscoring the delicate balance in digital asset markets under evolving economic conditions.
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