The crypto market slipped on Dec. 5, with Bitcoin and most altcoins falling as liquidations rebounded and open interest declined.
Bitcoin (BTC) fell from over $93,000 earlier in the week to below $90,000. Among the top laggards were Canton, MYX Finance, Aptos, Hyperliquid, Morpho, and Aerodrome Finance.
Daily futures open interest dropped 4.35% to $127 billion, down from an October high of $225 billion, as investors continued to deleverage following the $20 billion wipeout on October 10. Prices often remain under pressure while open interest trends downward.
Total liquidations surged more than 75% from the prior day to $491 million, wiping out 135,667 traders. Bitcoin liquidations totaled $191 million and Ethereum liquidations reached $116 million. Other heavily liquidated tokens included Solana, XRP, and Fartcoin. Rising bullish liquidations typically increase selling pressure and amplify price declines.
The sell-off comes ahead of a major options expiry worth over $4.8 billion. Bitcoin options worth over $3.5 billion are set to expire with a maximum pain at $91,000, while Ethereum options exceeding $700 million carry a maximum pain at $3,050. Volatility often picks up before and after large expiries.
The pullback also reflects profit-taking after Bitcoin’s recent rebound from $80,000 to more than $93,000 in under two weeks. Looking ahead, the next key catalyst will be the Federal Reserve’s interest rate decision due next Wednesday. Polymarket data shows the odds of a 0.25% rate cut have risen to 93% from under 50% last week; while a cut could be bullish for crypto, the Fed’s guidance may still influence market performance.
