Bearish Pressure and Hopes for a Turnaround — What Happened in the Crypto World 11/28–12/5/2025

Bearish Pressure and Hopes for a Turnaround — What Happened in the Crypto World 11/28–12/5/2025

This week was full of turbulence in cryptocurrencies — from declines to nervous sentiment, to signs of a possible recovery and major regulatory decisions. Here are the key events and trends that no cryptocurrency investor should miss.

1. Sharp Drop in Early December — Markets Under Pressure

Bitcoin (BTC) found itself under strong selling pressure — falling about 5% below the $90,000 mark on the first day of December.

Other major cryptocurrencies also fell along with Bitcoin, including Ethereum (ETH), which responded by falling about 6%.

The decline was partly due to a strong correlation with stock markets and investor uncertainty about risky assets.

November 2025 was one of the worst months for cryptocurrencies — Bitcoin weakened against the peak, which prompted many investors to reassess risks.

2. Sudden rebound — the market is looking for a bottom

Immediately after the drop, the markets saw signs of recovery: Bitcoin rebounded back to ~ $92,000 on November 28.

Although the recovery was partial, it raised some hope — mainly due to the expected reduction in interest rates in the US, which could renew interest in risky assets, including cryptocurrencies.

However, the market remains fragile — even with the rebound, the decline is not expected to mark the end of the bear phase unless a stronger fundamental impulse comes.

3. Regulatory changes and institutionalization – signals for long-term investors

In the US, the CFTC has made a significant shift: from December 4, 2025, it has allowed spot cryptocurrency products to be traded on regulated exchanges — this means that cryptocurrencies are further integrated into the traditional financial infrastructure.

Bank of America (BofA) has also announced that from January 2026, it will allow its advisory teams to recommend cryptocurrency ETPs to clients — this is a significant signal that some banks see crypto as an investment future for the wider public.

On the contrary, regulators in other regions remain cautious — for example, the People’s Bank of China (PBOC) has reminded that the country has a strict ban on cryptocurrency trading and warned against stablecoins due to their possible misuse for money laundering.

These steps point the way — cryptocurrencies are no longer just the domain of fans and speculators, but are becoming part of the broader financial architecture.

4. Institutions back off — investor sentiment shifts

One of the biggest news stories of the week was CoinShares’ decision to scrap plans to launch several new cryptocurrency ETFs (focused on assets like XRP, Solana, and Litecoin), including a bitcoin futures ETF. The firm said the space for new products is currently too competitive.

The move shows that despite regulatory integration, institutions are not willing to take risks in a new, volatile market — at least not in the form they originally planned.

This may be a warning sign for speculative investors, but it also highlights the role of caution and selection in institutional capital.

5. What to watch next — key drivers for further developments

Reaction to rate changes in the US — if central banks cut interest rates, demand for risky assets may increase.

Institutional approach — banks and ETP products can bring stability, but it depends on the regulatory environment.

Regulation in Asia and Europe — strict crackdowns on stablecoins or other “crypto products” could destabilize the entire sector.

Capital return to crypto — if confidence is restored and new capital flows in, a strong wave of interest could come again.

Conclusion: The market is in a transition phase — a risk for some, an opportunity for others

The week of November 28 - December 5, 2025 showed that cryptocurrencies live on the edge between a collapse and a possible rebound. Volatility remains high, but at the same time, the infrastructure that allows for longer-term investments is starting to form — regulation, banks, ETPs.

For short-term speculators, the situation is risky: sharp fluctuations, uncertainty and turbulence. But for strategic investors, it can be an opportunity — for accumulation or entry into a period of uncertainty.

*This is not an investment recommendation.

Coingarage Team