Market Analysis of Cryptocurrencies on December 3, 2025: Yearn Finance Hack, Bitcoin Correction, Top Altcoins Dynamics, and Key Market Trends
The cryptocurrency market commenced December with a sharp correction: following a recent rally, Bitcoin has lost positions, and prices for many altcoins have declined. The spotlight has turned to the hack of the DeFi protocol Yearn Finance, resulting in the loss of millions of dollars. Additionally, speculative volatility and profit-taking have exacerbated the pullback in prices. Meanwhile, institutional interest in digital assets remains high: major banks and funds are expanding investor access to crypto-ETFs and trading funds. The market backdrop is contradictory: on one hand, new technological products are turning towards cryptocurrencies, while on the other, regulators are exercising caution. Investors across various regions (U.S., EU, Asia) are closely monitoring economic signals and industry news.
Bitcoin Under Pressure
The first cryptocurrency has corrected by several percent since its historic peak. As of December 3, Bitcoin (BTC) is trading around $85,000, significantly below the record highs seen at the end of November. Profit-taking and a general decline in sentiment have pushed the price to a local minimum near $80,000 in short-term intervals. Experts note that key support lies in the $80-$82k range: a breach of this zone could lead to further declines. However, in the mid-term perspective, most analysts continue to forecast a sustained bullish trend upon recovery in demand. According to experts, overcoming stable resistance levels could allow Bitcoin to reach new heights.
Ethereum and Altcoins: Correction Amidst Sell-offs
Following Bitcoin, leading altcoin Ethereum (ETH) and other major tokens have also declined. At the time of publication, Ethereum is trading around $2,800, which is several percent lower than its recent peak above $3,000. Other altcoins have also felt the pressure: XRP, Binance Coin, Solana, Cardano, and more. For instance, Ripple (XRP) has dropped to about $2.70, Binance Coin (BNB) is around $800, while Solana (SOL) is near $135. Market participants associate this decline with news regarding Yearn Finance and the overall rise in volatility. At the same time, many investors note that previously, capital inflows shifted towards Ethereum-based products, which partially supports ETH prices. Forecasts for altcoins remain mixed: if the situation stabilizes, consolidation may 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 was a serious incident within the decentralized finance (DeFi) ecosystem. The Yearn Finance protocol confirmed a successful attack: the hacker exploited a vulnerability in the smart contracts of the yETH token, “printing” billions of coins and withdrawing around $9 million from the liquidity pool. While the main Yearn pools remained untouched, the news triggered panic among traders. The price of the YFI token has sharply decreased, and other crypto assets have come under pressure. Experts remind that such smart contract errors and unprecedented “bugs” pose a significant risk for DeFi protocols.
Institutional Investments and Regulatory Environment
Despite the current turbulence, the interest of major players in cryptocurrencies remains high. Last week, it was announced that investment bank Goldman Sachs will acquire ETF issuer Innovator Capital Management for $2 billion, expanding its presence in the cryptocurrency product segment. Simultaneously, $11 trillion Vanguard, which has long favored traditional assets, will allow its clients to trade ETFs on Bitcoin, Ethereum, XRP, and Solana effective December 3. At the same time, Bank of America officially recommends 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 in the U.S. and EU, new rules are under discussion to protect investors. This contrast shows that the infrastructure for institutional investments is expanding but oversight remains strict.
Market Sentiment and Volatility
The sharp drop in prices has led to a rise in fear in the market: according to various estimates, the “fear and greed” index has fallen to extremely low values (around 20-25 points), indicating panic among investors. Market participants point to accelerating 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 about the importance of adhering to risk limits: extreme sell-offs often precede reversals, but in the short term, any increase in tensions 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 could be a temporary pause before renewed growth. For example, Standard Chartered specialists continue to assert that Bitcoin could reach levels around $150,000-$200,000 by year-end, while Ethereum may reach $7,000-$8,000. Optimists note that even after the recent pullback, current levels are close to most mid-term targets. At the same time, cautious traders warn of risks associated with further corrections: macroeconomic pressures and increased regulatory scrutiny could slow down price recoveries. As a result, experts anticipate a period of consolidation: when demand stabilizes, key resistance levels will be critical in determining the future trend.
Top 10 Most Popular Cryptocurrencies
- Bitcoin (BTC) — the first and largest cryptocurrency. Current rate approximately $85,000, market capitalization exceeds $1.5-$1.7 trillion (around 60% of the market).
- Ethereum (ETH) — the leading altcoin and platform for smart contracts. Price around $2,800, market capitalization approximately $300-$350 billion.
- Tether (USDT) — the largest stablecoin backed by the U.S. dollar. Price stable at $1, market capitalization above $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. Value 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. Rate approximately $135, market capitalization around $90-$95 billion. The popularity of SOL is supported by the active development of projects in the ecosystem and expectations of a spot ETF launch.
- USD Coin (USDC) — second-largest dollar-pegged stablecoin. Price fixed at $1, market capitalization around $60-$70 billion. USDC is used in institutional transactions and DeFi protocols due to its transparent reserves.
- Cardano (ADA) — blockchain platform with a scientific approach. ADA is valued around $0.50-$0.60, market capitalization about $20-$25 billion. The project attracts attention with plans for upgrades and discussions of launching related financial products.
- TRON (TRX) — blockchain for smart contracts, popular in Asia. Trading around $0.33, market capitalization around $30-$35 billion. TRX remains in the top ten largest coins due to extensive use of the network for issuing stablecoins.
- Dogecoin (DOGE) — the known meme cryptocurrency. Price approximately $0.18-$0.20, market capitalization $25-$30 billion. DOGE is supported by a significant community and periodic attention from celebrities, keeping it in the top ten despite high volatility.
The Cryptocurrency Market on the Morning of December 3, 2025
Prices for major digital assets 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)
