New York, December 2, 2025 :
Bitcoin suffered a sharp reversal in Tuesday’s New York trading session, tumbling 8% to $83,824 and wiping out nearly $200 billion in market capitalization, as investors reacted nervously to President Donald Trump’s renewed push for restrictive crypto regulations and increasing scrutiny by the U.S. Securities and Exchange Commission (SEC).
The broader crypto market followed the downturn, with Ether plunging 10% to $2,719, extending what analysts describe as a deepening risk-off cycle. Bitcoin is now down 30% from its October peak, a slide accelerated by Trump’s December 1 tweet vowing to “end anonymous mining,” a signal widely interpreted as the start of a more aggressive federal oversight regime.
Regulators are already tightening their grip. The SEC’s expanding probe into the reserves backing Tether, the world’s largest stablecoin, has heightened fears of liquidity stress across exchanges and decentralized finance platforms.
Industry leaders voiced urgent concerns. Coinbase CEO Brian Armstrong called for “pro-innovation, not punitive” policies to avoid driving U.S. blockchain companies offshore. BlackRock chairman Larry Fink warned that $1 trillion in market value could be at risk if regulatory uncertainty persists.
The sell-off was also fueled by weakening global demand. Indian crypto inflows dropped ₹5,000 crore in 2025, according to CoinDCX, influenced by the country’s stringent 30% tax on digital assets, which continues to throttle local participation.
Despite the turmoil, major banks say support could emerge soon. JPMorgan analysts project $70,000 as a key floor, citing the Federal Reserve’s expected interest-rate pause as a stabilizing force for risk assets.
Meanwhile, traditional safe-haven investments strengthened. Gold rose 2% to $2,650 per ounce, marking a clear shift in investor sentiment as macroeconomic uncertainty deepens.
With Trump’s administration preparing an overhaul of crypto policy and regulators intensifying enforcement, markets are bracing for a volatile December likely to shape the industry’s trajectory into 2026.
