Market Analysis of Cryptocurrency as of December 3, 2025: Yearn Finance Hack, Bitcoin Correction, Dynamics of Top Altcoins and Key Market Trends
The cryptocurrency market has kicked off December with a sharp correction: following a recent rally, Bitcoin has lost ground, and prices for many altcoins have declined. The focus has shifted to the hack of the DeFi protocol Yearn Finance, which resulted in the loss of millions of dollars. Furthermore, speculative volatility and profit-taking have exacerbated the price downturn. However, institutional interest in digital assets remains high, with major banks and funds expanding investor access to crypto ETFs and trading funds. The market backdrop is contradictory: on one hand, new tech products are being developed in favour of cryptocurrencies, while on the other, regulators are exercising caution. Investors across different regions (US, EU, Asia) are closely monitoring economic signals and news from the industry.
Bitcoin Under Pressure
Following its all-time high, the first cryptocurrency has corrected by several percentage points. As of December 3, the price of Bitcoin (BTC) is approximately $85,000, significantly lower than the record levels seen at the end of November. Profit-taking and a general decline in sentiment have driven the price to a local minimum of around $80,000 on short-term intervals. Experts note that key support is in the $80–82k range: breaking below this could lead to further declines. Nonetheless, in the medium term, most analysts continue to foresee a bullish trend as demand recovers. According to experts, overcoming resilient resistance levels may allow Bitcoin to ascend to new heights.
Ethereum and Altcoins: Correction Amidst Sell-offs
Following Bitcoin, the leading altcoin Ethereum (ETH) and other major tokens have seen price declines. At the time of publication, Ethereum is trading around $2,800, which is several percent below its recent peak above $3,000. Other altcoins such as XRP, Binance Coin, Solana, and Cardano have also come under pressure. For instance, Ripple (XRP) has dropped to approximately $2.70, Binance Coin (BNB) to around $800, and Solana (SOL) to about $135. Market participants attribute this decline to news surrounding Yearn Finance and an overall increase in volatility. However, many investors note that capital inflow had previously shifted towards Ethereum-based products, partially supporting ETH prices. Forecasts for altcoins remain mixed: should the situation stabilise, consolidation could occur, but further dynamics will depend on the overall market conditions.
DeFi Hack: The Yearn Finance Incident
One of the key events of the week has been a serious incident within the decentralised finance (DeFi) ecosystem. The Yearn Finance protocol has confirmed a successful attack: the perpetrator exploited a vulnerability in the smart contracts of the token yETH, 'printing' billions of coins and withdrawing approximately $9 million from the liquidity pool. Although the main pools of Yearn remained unaffected, the news itself caused panic among traders. The value of the YFI token plummeted sharply, while other crypto assets faced increased pressure. Experts remind that such smart contract errors and unprecedented bugs still pose significant risks for DeFi protocols.
Institutional Investments and Regulatory Environment
Despite the current turbulence, interest from major players in cryptocurrencies remains high. Last week, it was announced that investment bank Goldman Sachs would acquire the ETF issuer Innovator Capital Management for $2 billion, expanding its footprint in the cryptocurrency product segment. Simultaneously, the $11 trillion Vanguard, which had long been a supporter of traditional assets, will allow its clients to trade exchange-traded funds based on Bitcoin, Ethereum, XRP, and Solana starting December 3. Additionally, Bank of America officially recommends investors allocate up to 1–4% of their portfolio to digital assets, while some hedge funds and pension funds are gradually venturing into cryptocurrencies as part of long-term investments. The regulatory landscape presents a mixed picture: China continues to outlaw private cryptocurrency trading, while new rules to protect investors are being discussed in the US and EU. This contrast indicates that the infrastructure for institutional investments is expanding, yet oversight remains strict.
Market Sentiment and Volatility
The sharp decline in prices has led to an increase in fear within the market: various estimates indicate that the "Fear and Greed Index" has fallen to extremely low levels (around 20–25 points), signalling panic among investors. Market participants have noticed accelerated volatility and record liquidation volumes: during the Asian session alone, exchanges recorded forced closures of long positions worth hundreds of millions of dollars. Such liquidations accelerate price declines. The current situation serves as a reminder to market participants about the importance of adhering to risk limits: extreme sell-offs are often precursors to reversals, yet in the short term, any escalation may provoke additional losses.
Forecasts and Expectations
Opinions among experts regarding the future development of the cryptocurrency market are divided. Some analysts maintain bullish forecasts: they believe that the current correction may merely be a temporary pause before growth resumes. For instance, specialists at Standard Chartered still contend that Bitcoin is capable of reaching levels of around $150–200k by year-end, while Ethereum could rise to $7–8k. Optimists note that even after the recent pullback, current levels are close to most medium-term targets. Conversely, cautious traders warn of the risks associated with further corrections: pressures from macroeconomic factors and increased regulatory scrutiny could hinder price recovery. Consequently, experts anticipate a period of consolidation: should demand stabilise, key resistance levels will likely determine future trends.
Top 10 Most Popular Cryptocurrencies
- Bitcoin (BTC) — the first and largest cryptocurrency. Current price around $85,000, with a capitalization exceeding $1.5–1.7 trillion (approximately 60% of the market).
- Ethereum (ETH) — the leading altcoin and platform for smart contracts. Price approximately $2,800, with a capitalization of around $300–350 billion.
- Tether (USDT) — the largest stablecoin, backed by the US dollar. Price stable at $1, with a capitalization of more than $150–160 billion.
- Ripple (XRP) — token of the Ripple payment network. Trading around $2.70, capitalization approximately $120–130 billion. News surrounding the status of the token in the US continues to influence its popularity.
- Binance Coin (BNB) — cryptocurrency of the Binance exchange. Price around $800, capitalization approximately $100–110 billion. BNB is popular due to its extensive use on the exchange and within the BNB Chain ecosystem.
- Solana (SOL) — a high-performance blockchain platform. Price approximately $135, with a capitalization of around $90–95 billion. The popularity of SOL is supported by active development within the ecosystem and expectations for the creation of a spot ETF.
- USD Coin (USDC) — the second-largest dollar-denominated stablecoin. Price fixed at $1, with capitalization around $60–70 billion. USDC is used in institutional transactions and DeFi protocols due to the transparency of its reserves.
- Cardano (ADA) — a blockchain platform with a scientific approach. ADA trades for approximately $0.50–0.60, with capitalization around $20–25 billion. The project attracts attention with plans for new upgrades and discussions regarding the launch of related financial products.
- TRON (TRX) — a blockchain for smart contracts, popular in Asia. Trading around $0.33, with a capitalization of about $30–35 billion. TRX remains among the top ten coins due to widespread use in the network for stablecoin issuance.
- Dogecoin (DOGE) — a famous meme cryptocurrency. Price around $0.18–0.20, capitalization $25–30 billion. DOGE is supported by a significant community and periodic attention from high-profile individuals, keeping it in the top ten despite high volatility.
Cryptocurrency Market Update as of December 3, 2025
Prices of major digital assets as of the morning:
- Bitcoin (BTC): $85,000
- Ethereum (ETH): $2,800
- Ripple (XRP): $2.70
- Binance Coin (BNB): $800
- Solana (SOL): $135
- Tether (USDT): $1.00
- Total market capitalization: ~ $3.5 trillion
- Fear and Greed Index: ~ 23 (extreme fear)
