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Why Is The Crypto Market Down Today?

05 December 2025 04:14 UTC
Trusted
  • TOTAL holds $3.09 trillion support, with recovery hinging on improving sentiment and stronger inflow participation.
  • Bitcoin remains trapped below downtrend, needing bullish momentum to overcome $95,000 and restore upside structure.
  • VIRTUAL struggles near $0.916 support, with breakdown risks rising amid weakening sentiment and persistent bearish pressure.
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The total crypto market cap (TOTAL) is stabilising, looking at a pause before resuming momentum and picking a direction. Bitcoin (BTC) is stuck under a downtrend, while Virtuals Protocol (VIRTUAL) is facing a 6% drop at the time of writing.

In the news today:-

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  • Franklin Templeton has entered the Solana market with a new Franklin Solana ETF, giving investors direct exposure to SOL’s price. The firm joins Grayscale, Fidelity, 21Shares, etc, signaling quickly growing institutional competition around Solana-based investment products.
  • Bitcoin mining profitability hit record lows in late 2025 as hash rate revenues collapsed and operating costs surged, pushing miner payback periods past 1,200 days. With margins crushed, about 70% of major mining firms shifted toward AI infrastructure, marking a pivotal transformation in the industry.

The Crypto Market Is Holding On

The total crypto market cap is down $39 billion today, now sitting at $3.11 trillion while holding above the $3.09 trillion support level. This zone remains critical for maintaining short-term stability as investors reassess sentiment following the latest pullback.

If market conditions worsen, TOTAL could lose the $3.09 trillion and $3.05 trillion supports and fall toward $3.00 trillion. Rising skepticism may pressure traders to sell, increasing volatility and deepening the correction across major assets.

Total Crypto Market Cap Analysis
Total Crypto Market Cap Analysis. Source: TradingView

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If conditions improve, TOTAL could rebound and breach the $3.16 trillion resistance, opening the path toward the $3.21 trillion barrier. Renewed confidence and stronger inflows would help reinforce the broader recovery.

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Bitcoin Is Awaiting a Breakout

Bitcoin’s price remains stuck under its established downtrend, signaling uncertainty as traders watch broader market cues for direction. The crypto king’s next move depends heavily on macro conditions.

If conditions worsen, Bitcoin could break below $91,521 and slide through $89,800 to test $86,822. Such a decline would threaten investor confidence and amplify short-term selling pressure, reinforcing the existing downtrend.

Bitcoin Price Analysis
Bitcoin Price Analysis. Source: TradingView

If bullish momentum strengthens, Bitcoin’s price could finally breach the downtrend and push past $95,000 toward $98,000. A breakout above these levels would invalidate the bearish thesis and reestablish upward structure.

Virtuals Protocol Finds Support

VIRTUAL price is down 6% over the last 24 hours, trading at $0.923 as the Parabolic SAR signals a continued downtrend. The altcoin remains under pressure, reflecting weakening sentiment and reduced buyer participation.

VIRTUAL is holding above the $0.916 support level, but a stronger bearish push could force the price below this zone. A breakdown would open the path toward $0.819, signaling deeper losses and extending the current decline as sellers retain control of the market.

VIRTUAL Price Analysis.
VIRTUAL Price Analysis. Source: TradingView

If bullish momentum returns, VIRTUAL could rebound from $0.916 and climb toward the $1.000 mark. A successful breakout above this psychological barrier would invalidate the bearish thesis and potentially push the altcoin to $1.05.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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