Key Insights:
- The crypto market fell as Bitcoin dropped below key levels and pulled the wider market lower.
- Shrinking USDT supply shows less money available for buying across the crypto market.
- Global rate worries and low weekend trading made the crypto market drop look sharper.
The crypto market lost almost 3.7% in the last 24 hours. This was not driven by one token or one piece of news.
Bitcoin moved lower first, and because it makes up close to 60% of the overall market, the other crypto prices followed.
At the same time, trading activity was thin, fewer buyers were active, and global risks made traders step back. But those weren’t the only reasons.
Keep reading to understand why the market corrected in mid-December 2025.
Less Trading Money Is a Concern for Crypto Prices
One clear change right now is the amount of money available for trading. Data shows the USDT market cap is still going down. USDT is widely used to buy and sell crypto.
When its supply shrinks, it usually means new money is not coming in. With fewer buyers, the crypto prices fall faster when selling starts.
Even normal selling can look heavy when there is not much demand on the other side. This is why moves feel sharp even without panic.
Bitcoin falling below $90,000 made things worse. Once that level broke, many traders who were using borrowed funds were forced out of their positions. That’s apparently a long squeeze scenario in the crypto market.
Those sales were automatic. They did not wait for news or opinions. They just hit the market and pushed prices lower.
The timing mattered too. Much of the drop happened over the weekend. During these hours, trading volume is usually lower.
When that happens, the crypto prices move more from smaller orders. This is why the decline across the crypto market happened quickly.
Large sellers added pressure. On-chain data showed Wintermute moving and selling Bitcoin during the drop.
Firms like Wintermute provide liquidity across exchanges. When they sell during quiet periods, prices usually react more strongly. But blaming Wintermute is just one piece of the puzzle.
Even leading exchanges supposedly dumped BTC. It is worth noting that if BTC keeps dropping, with even $70,000 being on the cards, the crypto market can take a bigger hit.
Global Rate Worries Are Impact the Crypto Market
Outside crypto, traders are also watching Japan. Markets are preparing for a possible Bank of Japan rate hike.
This matters because for years, investors borrowed cheap yen and used it to buy risk assets, including crypto. If Japanese rates rise, that trade starts to unwind.
Investors sell risky assets and move money back. The market often feels this pressure early.
The United States added more uncertainty. Recent economic data has made it unclear how fast rates may fall going forward.
When traders do not know what comes next, they usually avoid taking new positions. That slows buying even more.
So instead of new money coming in, traders focused on reducing exposure. In a market that was already thin, that was enough to push the crypto prices lower.
Money Flow Could Impact the Crypto Market
What happens next is less about headlines and more about money flow. If the USDT supply keeps shrinking and global rate concerns remain, the crypto market could stay under pressure.
Bitcoin is still the main driver. If it stays weak, the rest of the market will likely struggle. If selling slows and Bitcoin stabilizes, pressure across altcoins may ease.
This move does not look like a breakdown of crypto itself. It looks like a period where money is cautious, and activity is low. These phases often come after strong rallies and before new trends form.
For now, the crypto market is reacting to less buying power and global uncertainty. Until that changes, price moves are likely to stay uneven.
Source: https://www.thecoinrepublic.com/2025/12/16/crypto-market-crash-heres-why-the-crypto-prices-are-going-down-today/
