Market Analysis of Cryptocurrencies as of December 3, 2025: Yearn Finance Hack, Bitcoin Correction, Altcoin Dynamics, 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. A significant focus has been on the hacking of the DeFi protocol Yearn Finance, which resulted in the loss of millions of dollars. Additionally, speculative volatility and profit-taking have exacerbated the price retracement. Nevertheless, institutional interest in digital assets remains robust: major banks and funds are expanding investor access to crypto ETFs and trading funds. The market backdrop is contradictory: on one hand, new technical products are being launched in favor of cryptocurrencies, while on the other hand, regulators are exhibiting caution. Investors in various regions (U.S., EU, Asia) are closely monitoring economic signals and industry news.
Bitcoin Under Pressure
The first cryptocurrency has corrected several percentage points following its historic peak. As of December 3, the price of Bitcoin (BTC) is approximately $85,000, significantly lower than the record highs from late November. Profit-taking and overall sentiment decline have pushed the price down to a local minimum of around $80,000 on short-term intervals. Analysts note that key support is in the $80–82k range: breaking this level could lead to further declines. However, in the medium term, most analysts continue to expect a bullish trend to persist as demand recovers. Experts believe that surpassing established resistance levels will allow Bitcoin to return to new highs.
Ethereum and Altcoins: Correction Amid Sell-offs
Following Bitcoin, the price of the leading altcoin Ethereum (ETH) and other major tokens has also decreased. At the time of publishing, Ethereum is trading around $2,800, which is several percent below its recent peak of over $3,000. Other altcoins have also suffered: XRP, Binance Coin, Solana, Cardano, and others. For example, Ripple (XRP) has fallen to around $2.70, Binance Coin (BNB) to about $800, and Solana (SOL) around $135. Market participants attribute this decline to news surrounding Yearn Finance and the overall increase in volatility. However, many investors note that the earlier influx of capital was shifting towards Ethereum-based products, which partially supports ETH prices. Predictions for altcoins remain mixed: if the situation stabilizes, consolidation may occur, but further dynamics will depend on the overall conditions in the financial markets.
DeFi Hack: The Yearn Finance Incident
One of the key events of the week has been a serious incident in the decentralized finance (DeFi) ecosystem. The Yearn Finance protocol confirmed a successful attack: the perpetrator exploited a vulnerability in the smart contracts of the yETH token, “printing” billions of coins and withdrawing about $9 million from the liquidity pool. Although the main Yearn pools remained unaffected, the news triggered panic among traders. The price of the YFI token plummeted, and other crypto assets were also pressured. 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 among major players in cryptocurrencies remains high. Last week, it was reported that investment bank Goldman Sachs will acquire the ETF-fund issuer Innovator Capital Management for $2 billion, expanding its presence in the cryptocurrency products segment. At the same time, $11 trillion Vanguard, which has long favored traditional assets, will allow its clients to trade ETFs based on Bitcoin, Ethereum, XRP, and Solana starting December 3. Moreover, Bank of America officially recommends that investors allocate up to 1–4% of their portfolios to digital assets, while some hedge funds and pension funds are gradually exploring cryptocurrencies as part of long-term investments. The regulatory landscape presents a mixed picture: China continues to ban private cryptocurrency trading, while new rules are being discussed in the U.S. and the EU to protect investors. This contrast indicates that the infrastructure for institutional investments is expanding, but oversight remains stringent.
Market Sentiment and Volatility
The sharp drop in prices has led to a rise in fear within the market: various estimates suggest that the "fear and greed" index has plummeted to extremely low levels (around 20–25 points), indicating panic among investors. Market participants have noted an acceleration in volatility and record liquidation volumes: during the Asian session alone, exchanges recorded forced closures of long positions amounting to hundreds of millions of dollars. Such “liquidations” accelerate price declines. The current situation serves as a reminder to market participants of the importance of adhering to risk limits: extreme sell-offs often precede reversals, however, in the short term, any escalation could provoke additional losses.
Forecasts and Expectations
Experts' opinions on the future development of the cryptocurrency market are divided. Some analysts maintain bullish forecasts: they believe that the current correction may be a temporary pause before growth resumes. For instance, specialists at Standard Chartered still believe that Bitcoin could reach levels of around $150,000–200,000 by the end of the year, and Ethereum around $7,000–8,000. Optimists point out that even after recent pullbacks, current levels are close to most mid-term targets. Conversely, cautious traders warn about the risks of further correction: macroeconomic pressures and heightened regulatory scrutiny could slow the recovery of prices. As a result, experts expect a period of consolidation: as demand stabilizes, key resistance levels will likely determine the subsequent trend.
Top 10 Most Popular Cryptocurrencies
- Bitcoin (BTC) — the first and largest cryptocurrency. Current price around $85,000; market capitalization exceeds $1.5–1.7 trillion (approximately 60% of the market).
- Ethereum (ETH) — leading altcoin and smart contract platform. Price approximately $2,800; market capitalization around $300–350 billion.
- Tether (USDT) — the largest stablecoin backed by the U.S. dollar. Price stable at $1; market capitalization over $150–160 billion.
- Ripple (XRP) — token of the Ripple payment network. Trading around $2.70; market capitalization approximately $120–130 billion. News surrounding the token's status in the U.S. continues to impact its popularity.
- Binance Coin (BNB) — cryptocurrency of the Binance exchange. Price around $800; market capitalization approximately $100–110 billion. BNB is popular due to its wide usage on the exchange and within the BNB Chain ecosystem.
- Solana (SOL) — high-performance blockchain platform. Price approximately $135; market capitalization around $90–95 billion. SOL's popularity is sustained by active development within its ecosystem and expectations for the launch of a spot ETF.
- USD Coin (USDC) — the second-largest dollar stablecoin. Price fixed at $1; market capitalization around $60–70 billion. USDC is used in institutional settlements and DeFi protocols due to the transparency of its reserves.
- Cardano (ADA) — blockchain platform with a scientific approach. ADA is priced around $0.50–0.60; market capitalization around $20–25 billion. The project attracts attention for its plans for new upgrades and discussions around the launch of related financial products.
- TRON (TRX) — blockchain for smart contracts, popular in Asia. Trading around $0.33; market capitalization around $30–35 billion. TRX remains among the top ten cryptocurrencies due to its widespread use for stablecoin issuance.
- Dogecoin (DOGE) — well-known meme cryptocurrency. Priced around $0.18–0.20; market capitalization at $25–30 billion. DOGE is supported by a significant community and periodic attention from celebrity figures, keeping it within the top 10 despite high volatility.
Cryptocurrency Market as of the Morning of December 3, 2025
Prices of major digital assets as of this 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)
