Crypto Market Plummets as Bitcoin, Ethereum, and Dogecoin Face Steep Declines
The cryptocurrency market is once again experiencing a significant downturn, leaving investors concerned as major digital assets like Bitcoin, Ethereum, and Dogecoin see sharp price drops. Despite a brief period of recovery earlier in the week, these leading cryptocurrencies are now grappling with renewed downward pressure, driven by a confluence of macroeconomic uncertainties and internal market dynamics. Investor sentiment remains highly sensitive to these shifts, highlighting the volatile nature of the crypto landscape.
Macroeconomic Headwinds and FED Skepticism
A primary catalyst for the current decline stems from growing doubts surrounding the Federal Reserve's (FED) future interest rate policy. Recent remarks from FED officials, including Minneapolis Federal Reserve Bank President Neel Kashkari, suggest that the central bank might not deliver a third consecutive easing of policy at the upcoming December FOMC meeting. Kashkari's statements, indicating that recent economic data points to greater resilience than anticipated, have sparked debate over the necessity of further rate cuts. This cautious stance has rattled financial markets, forcing investors to re-evaluate their positions and contributing to the prevailing uncertainty in the crypto space.
Significant Losses Across Top Cryptocurrencies
The market response to these pressures has been swift and severe for the prominent digital assets. Bitcoin has plummeted below $97,000 for the first time since May 2025, experiencing a more than 5% drop over the week and an additional 6.4% in a single day. This sell-off is exacerbated by long-term BTC holders reportedly offloading their assets at record levels and weakening institutional demand. Notably, Spot Bitcoin ETFs recorded over $866.7 million in net outflows recently—the second largest in their history. Ethereum has also taken a substantial hit, losing over 10% in the last 24 hours and more than 5% this week, now trading around $3,200. This represents a decline of over 35% from its August peak of $4,950. Even Dogecoin, while initially less affected by the broader bearish trend, has seen its price fall by approximately 2.3% this week, with an additional 8% drop in a single day, settling at $0.165. These widespread declines across Bitcoin, Ethereum, and Dogecoin collectively point to a market enduring extreme stress, with all three registering double-digit monthly losses.
