Bitcoin Falls Under $89K, $100B+ Erased from Crypto Market

by Vivian Nguyen
Dec. 5, 2025

Market volatility picked up after the latest U.S. inflation report, prompting investors to trim crypto exposure despite broadly steady underlying price pressures.

Key takeaways
- Bitcoin slipped below $89,000, triggering more than $100 billion in losses across the crypto market.
- U.S. PCE inflation data largely matched expectations, showing steady core inflation pressures.

More than $100 billion was removed from the cryptocurrency market over the past 24 hours as Bitcoin dropped beneath the $89,000 level.

CoinGecko data show total crypto market capitalization fell from about $3.2 trillion to roughly $3.1 trillion during the period. At the time of writing, Bitcoin was trading near $89,400, down about 3% for the day.

The pullback followed publication of the U.S. Personal Consumption Expenditures (PCE) index, which broadly met economists’ forecasts. Headline PCE rose 2.8% year over year, a hair above last month’s 2.7%, while the month-over-month gain held at 0.3%.

Core PCE, the Federal Reserve’s preferred inflation gauge, increased 2.8% year over year — slightly below some forecasts and the prior reading. On a monthly basis, core PCE was unchanged at 0.2%, signaling persistent but contained underlying inflation pressures.

Traders interpreted the data as confirmation that inflation is easing only gradually, prompting a risk-off reaction in crypto markets even though the report did not materially surprise policymakers. The result was a modest sell-off in major tokens and a pullback in overall market valuations.