Broad Sell-Off Hits Digital Assets

The cryptocurrency market started the new month on a downward trend, with broad declines on December 1 continuing the challenging conditions seen in October and November. Hopes for a stabilizing month and a stronger finish to the year were quickly tempered as major digital assets fell.

Bitcoin (BTC) led the downturn, tumbling from its weekend highs as Asian markets opened. The price dropped over 5% in the last 24 hours, placing it below the cost basis of short-term holders and increasing the risk of further downside. The move coincided with a surge in gold, as macroeconomic uncertainty and shifting sentiment on Fed policy pushed some investors toward traditional safe-haven assets.

Despite the price dip, an increase in exchange balances and stablecoin reserves suggests that significant buying power remains on the sidelines.

Spot ETFs See Billions in Withdrawals

Data from November revealed significant capital flight from United States-based crypto exchange-traded funds (ETFs). Spot Bitcoin ETFs recorded a staggering $3.48 billion in net outflows for the month. Spot Ethereum ETFs also experienced their largest monthly outflow on record, with investors pulling $1.42 billion from the funds.

BlackRock’s IBIT, the largest Bitcoin ETF by net assets, was hit particularly hard, with $2.34 billion in net outflows in November. The fund posted its largest single-day withdrawal since its launch on November 18, totaling $523 million.

Project News and Regulatory Milestones

Amid the market turbulence, institutional interest in a Chainlink (LINK) ETF is gaining momentum. Asset managers like Grayscale and Bitwise are now in the race, with Grayscale planning to convert its Chainlink Trust into a spot ETF. The trust, launched in 2021, currently holds $17.2 million in assets under management (AUM). If approved, it would become the first spot LINK ETF in the U.S.

In a significant regulatory development, Ripple has secured an expanded Major Payment Institution license for its Singapore subsidiary from the Monetary Authority of Singapore. This approval allows Ripple to broaden its payment services in the key financial hub, positioning the company for further growth in the Asia-Pacific region.

Over $640 Million in Liquidations

The sharp price movements over the past day triggered a wave of liquidations across the market. In the last 24 hours, nearly 220,000 traders were liquidated, amounting to a total of $643.24 million. The largest single liquidation event was a $14.48 million ETH/USDC position on the Binance exchange.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice, investment advice, or any other sort of advice. You should not treat any of the website’s content as such. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.