DECEMBER 8 CRYPTO UPDATE: BITCOIN, SUI, TAO, ENA BOUNCE BACK AFTER WEEKEND CRASH

Crypto prices are showing a steady recovery after a sharp weekend decline, with the total market rising 1.7% in the past 24 hours to $3.2 trillion. As of the latest update, Bitcoin is trading at $91,091 (+1.6%), while Ethereum has climbed 2.3% to $3,124. XRP is also slightly higher at $2.07, up 1.1%.

Mid-cap altcoins are seeing even stronger gains. Sui is up 3%, Bittensor (TAO) has added 3.7%, and Ethena (ENA) is leading with a 5.1% increase.

According to CoinGlass, 24-hour liquidations have surged to $444 million, a 284% jump. Derivatives open interest has reached $30 billion, rising 2.6% from the previous day, while the average market RSI sits at a neutral 48. Market sentiment remains cautious, with the Fear & Greed Index holding at 20, signaling “Extreme Fear.”

The recovery follows Bitcoin’s brief drop below $90,000 over the weekend, touching lows near $88,000 amid a sudden spike in forced selling. Roughly $60 billion in market value was erased at the bottom, with altcoins hit the hardest—Ethereum and Solana both fell between 5% and 10% during the downturn.

Why the Market Drop Escalated Quickly

The rapid acceleration of the decline was largely driven by thin weekend liquidity, which often amplifies price swings. When futures markets are heavily leveraged, even moderate selling can trigger a chain reaction of liquidations. Several trading desks reported that some traders were using leverage levels as high as 200x on certain platforms before the downturn intensified.

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Estimates suggest that total forced liquidations over the weekend ranged between $700 million and $1 billion. One of the largest single events was a $17.81 million liquidation on Hyperliquid’s ETH-USD market.

Broader macro factors added pressure. Many traders reduced risk ahead of the U.S. Federal Reserve’s December 11 policy decision, as expectations for a rate cut softened. Still, market makers described the overall response as measured de-risking rather than full capitulation, noting that major investors scaled back exposure but maintained their long-term positions.

December Crypto Market Outlook

Analysts are mixed on the short-term direction of the crypto market, but the general mood for December is cautiously optimistic. Many see the recent dip as a normal pause in a broader upward trend, particularly now that risky leverage has been reduced and market positioning looks healthier.

According to CryptoQuant, futures markets are in a stronger position, with open interest hitting its lowest level of the year. This quiet phase often comes right before a stronger rebound, and with excessive leverage cleared, the market is more responsive to positive triggers.

K33 Research shares a similar outlook, noting that the recent correction may be nearing a bottom. Key indicators include easing ETF selling, reduced CME futures activity, and solid support in the $70,000–$80,000 range for Bitcoin. They expect December to be an important month, with institutional interest and potential policy developments possibly shaping the next market move.

FAQs

What triggered the crypto market drop over the weekend?

The decline was driven by thin weekend liquidity and extreme leverage in futures markets. Even moderate selling caused forced liquidations, with some traders using leverage as high as 200x.

How much market value was wiped out during the dip?

Approximately $60 billion in total market value was lost at the lowest point, with altcoins like Ethereum and Solana falling between 5% and 10%.

What were Bitcoin and Ethereum trading at after the rebound?

Bitcoin recovered to around $91,091 (+1.6%), while Ethereum rose to $3,124 (+2.3%). Mid-cap altcoins like SUI, TAO, and ENA also posted solid gains.

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How large were the forced liquidations over the weekend?

Estimates range from $700 million to $1 billion, including notable single events such as a $17.81 million liquidation on Hyperliquid’s ETH-USD pair.

What is the outlook for the crypto market in December?

Analysts are cautiously optimistic. Reduced leverage, healthier futures positioning, and strong Bitcoin support in the $70,000–$80,000 range suggest the market may stabilize and potentially rebound, especially with institutional interest and potential policy catalysts.