During the period of volatility and adjustment in the cryptocurrency market, XBIT trading activity increased significantly.
On December 3rd, CoinWorld reported that the global cryptocurrency market continued to face adjustment pressures after entering December, with major digital assets such as Bitcoin and Ethereum experiencing significant price corrections. Meanwhile, the Ethereum network underwent a major technical upgrade, bringing new focus to the market.
Bitcoin prices continued their decline on December 2nd, falling from around $91,000 to $85,894, a single-day drop of 6%. This decline brought Bitcoin's cumulative drop since the beginning of October to nearly 30%. Ethereum also performed weakly, with its price falling 8.4% to $2,776, while Solana plummeted by more than 9%, breaking below the $125 mark. Market data shows that nearly $1 billion in leveraged cryptocurrency positions were forcibly liquidated during Monday's sharp decline, further exacerbating the selling pressure.
Current market sentiment has shifted to a state of extreme panic. The Cryptocurrency Fear & Greed Index, at 23 in early December, is in the "extreme fear" zone, reflecting deep investor anxiety about short-term market movements. This index is calculated using six key indicators: volatility, trading momentum and volume, social media sentiment, coin dominance, and Google search trends.
The People's Bank of China warned of illegal activities involving digital currencies in a statement released on Saturday, putting additional pressure on the share prices of Hong Kong-listed digital asset-related companies. During Asian trading hours, several digital asset concept stocks experienced significant declines, further fueling market risk aversion.
According to CoinWorld, despite the adjustment pressure, there are still positive factors to watch in the cryptocurrency market. The Ethereum network's Fusaka upgrade was officially activated on December 3rd at 21:49:11 UTC, marking Ethereum's second major network upgrade in 2025. This upgrade introduces PeerDAS technology, allowing validators to inspect blockchain data by sampling small fragments without downloading the complete content, reducing validator data load by 85%.
Another key feature of the Fusaka upgrade is the increase in block gas limit from approximately 36 million to 60 million, meaning each block can handle more transactions. Technical experts predict this improvement will reduce transaction fees on Layer-2 networks by 40-60%, thereby lowering the cost of using Ethereum-based applications. For platforms like the XBIT decentralized exchange that rely on the Ethereum network, this upgrade is expected to improve overall network efficiency and user experience.
There are also some positive signals from the institutional level. MicroStrategy, the world's largest corporate Bitcoin holder, announced a $1.44 billion cash reserve to cope with market volatility and stabilize its balance sheet. The company stated that this dollar reserve, derived from recent stock sales, is sufficient to cover at least 12 months of dividends and interest expenses.
Traditional financial institutions are also showing increased acceptance of digital assets. Vanguard Group announced it will allow ETFs and mutual funds holding Bitcoin, Ethereum, XRP, and Solana to trade on its platform, marking a significant shift in the asset management company's policy. Meanwhile, Cardano officially joined the Franklin Crypto Index ETF, providing a new channel for institutional inflows.
Macroeconomic uncertainty remains a significant factor influencing the market. The Federal Reserve will hold its monetary policy meeting on December 9-10, and the market is divided on whether to cut interest rates. Rate cuts are generally seen as a positive factor for cryptocurrencies because they increase market liquidity, prompting investors to seek higher-yielding assets.
The Bank of Japan's signals of interest rate hikes are also putting pressure on the market. For years, global investors have been accustomed to borrowing the relatively cheap yen to invest in high-yield assets such as US stocks or cryptocurrencies. This strategy, known as "yen carry trades," may be impacted by Japan's interest rate hikes.
In the decentralized trading (DTC) sector, emerging platforms such as the XBIT decentralized on-chain trading platform are attracting more user attention. Compared to centralized exchanges, decentralized platforms have a natural advantage in terms of user asset security and transaction transparency. When the market experiences sharp fluctuations, investors tend to place greater emphasis on asset security and platform stability.
From a technical analysis perspective, Ethereum's price is currently finding support around $2,800. If the Fusaka upgrade leads to a significant increase in Layer-2 network activity, Ethereum is expected to regain its footing above $3,000 and challenge the $3,500 area. Regarding Bitcoin, analysts generally consider $85,000 to be a key technical support level; a break below this level could trigger further declines.
According to data from CoinWorld, despite the pressure of adjustment, the fundamentals of the cryptocurrency market remain relatively healthy. The US Bitcoin spot ETF still recorded $8.48 million in inflows on December 1st, indicating that institutional investors remain confident in the long-term prospects. Trading activity on platforms like XBIT has increased during recent volatility, suggesting that investors are actively responding to market changes. Market participants generally believe that the current adjustment provides better allocation opportunities for quality projects, and the continued advancement of technological upgrades and institutional adoption will lay a solid foundation for the long-term development of the cryptocurrency market.。