Jim Cramer Notes 'Horrible' Bitcoin Start To December As BTC Falls By $4,000 In Minutes

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Jim Cramer Notes 'Horrible' Bitcoin Start To December As BTC Falls By $4,000 In Minutes

Parshwa Turakhiya

Mon, December 1, 2025 at 5:33 PM EST

5 min read

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Bitcoin (CRYPTO: BTC) is down almost 6% in the past 24 hours after a sudden wave of long-position liquidations erased nearly $4,000 from price in a matter of minutes.

Cramer Says Speculation, Not Fundamentals Drove The Slide

Jim Cramer said the sharp decline reflected speculative positioning rather than any change in Bitcoin's underlying case.

In a post on X, Cramer said the morning selloff aligned with what he outlined in his Sunday note, arguing that Bitcoin and speculative trading "collaborate to start the month horribly" and have "nothing to do with companies we invest in."

He added that a surge in Japan's 10-year yield may have amplified the pressure.

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The comment followed one of the fastest liquidation events in weeks.

More than $400 million in leveraged long positions were wiped out during the drop, according to data cited by The Kobeissi Letter.

Analysts Cite Thin Liquidity And High Leverage

According to The Kobeissi Letter, the decline had no clear news catalyst and instead reflected thin liquidity, a common pattern during low-volume sessions late in the week.

Elevated leverage levels created conditions where even a modest burst of selling triggered forced liquidations.

The report said this dynamic has appeared several times this year, pointing to structural liquidity issues rather than deterioration in fundamentals.

Analysts have warned that high leverage can magnify routine price swings, especially when liquidity pools shrink near weekend trading.

Trend Break Adds Pressure As Technical Structure Weakens

BTC Key Technical Levels (Source: TradingView)

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Bitcoin's technical structure deteriorated further after the sharp rejection near the upper Keltner band and clustered EMAs around $92,000.

The move broke the rising two-hour trendline, sending price directly from the channel top to below the lower Keltner band.

Staying below the $89,000 zone keeps the short-term bias tilted downward.

A failure to regain the Keltner body and close above the $89,000 region may expose a move towards $78,000.

A stronger recovery requires buyers to reclaim the broken trendline and pull price back inside the Keltner structure.

BTC Netflows (Source: TradingView)

Coinglass data shows that Bitcoin recorded about $367 million in net outflows early Monday, marking one of the heaviest spot withdrawals in weeks.

Story Continues

The chart reflects a broad pattern of persistent red prints throughout the past month, underscoring how exchange participants have been offloading positions rather than adding exposure.

Image: Shuttterstock

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