'Why is Bitcoin, crypto down?': Panic after sudden crash to below $88k

Several investors on Sunday complained about a sudden crash in several cryptocurrencies, including Bitcoin and Dogecoin. "What is Bitcoin down today?" one of them asked on social media. Another one added: "Is there a reason behind this crash?"

At the time of writing this story, Bitcoin was down about 3% in the last hour. Ethereum was down over 4.5% in the same period, as per price tracking website CoinMarketCap.

"Crypto off to a rough start as nearly $400,000,000 longs were liquidated in the last hour," one person posted on X, platform formerly known as Twitter.

"Not sure who needs to hear this, but crypto is going to zero rn. 😄" another person added. They also attached a screenshot of a price tracker.

As of now the reason behind the sudden drop in crypto prices is unknown. Cryptocurrency prices are highly volatile and can fluctuate dramatically within short periods of time. Market movements may be influenced by regulatory changes, technological developments, investor sentiment, and global economic factors.

Bloomberg reported that Bitcoin slid as much as 4.3% to below $88,000 in early Asia trading. It added that Ether dropped 6% to below $2,900.

"It's a risk off start to December," Sean McNulty, APAC derivatives trading lead at FalconX, told the publication. "The biggest concern is the meagre inflows into Bitcoin exchange traded funds and absence of dip buyers. We expect the structural headwinds to continue this month. We are watching $80,000 on Bitcoin as the next key support level."

The coming week will deliver an important read on the strength of the US economy, offering fresh clues for policymakers debating how aggressively to move on interest rates through 2026.

Adding to the focus on monetary policy, President Donald Trump said Sunday that he has chosen a nominee for the next Federal Reserve chair, a selection he has repeatedly linked to his desire for lower borrowing costs.

Across markets, Asian stocks wavered in early Monday trading after logging their strongest weekly performance in nearly two months. US equity sentiment was more cautious, with S&P 500 futures slipping slightly.