U.S. futures dip; Black Friday spending surge - what’s moving markets
Investing.com-- Bitcoin fell sharply in Asian trading on Monday as the new month opened with renewed turbulence in the crypto market, after an incident at DeFi platform Yearn Finance triggered fresh concerns about liquidity.
The world’s largest cryptocurrency last traded 5.3% lower at $86,075.6 by 01:07 ET (06:07 GMT).
Bitcoin fell to as low as $85,638.3 in the last 24 hours. It declined more than 16% in November.
The sell-off was sparked after Yearn Finance said it was investigating an “incident” in its yETH liquidity pool. Reports indicated that a flaw had allowed an attacker to mint an extremely large amount of yETH tokens, effectively flooding the pool with invalid supply.
In simple terms, the exploit enabled someone to create tokens out of thin air, undermining confidence in the pool’s backing assets and prompting traders to rush for the exits.
The disruption stoked immediate volatility in correlated assets, with Bitcoin and other cryptocurrencies falling sharply.
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Fed rate cut bets in focus
The decline came just after Bitcoin closed out November with a sharp monthly drop. The pressure has persisted despite improving sentiment around U.S. monetary policy, which had supported risk assets toward the end of last month.
Expectations of a Federal Reserve rate cut in December strengthened notably over the past week, driven by weaker U.S. growth indicators and signs that inflation pressures are moderating.
Traders now assign an 87% probability to a 25-basis-point cut at the December 9–10 policy meeting, compared with odds near 40% only a week ago. The prospect of easier monetary conditions had initially helped steady crypto markets, but the Yearn Finance incident overshadowed that optimism.
Adding to the macro uncertainty, U.S. President Donald Trump said over the weekend that he already knows whom he will nominate as the next Federal Reserve Chair, though he has not publicly disclosed a name. The comment intensified speculation around potential candidates, including former White House economic adviser Kevin Hassett, who is viewed as leaning dovishly on monetary policy.
Crypto price today: Ether down 6%, XRP slumps over 7%
Most altcoins also saw sharp declines on Monday amid fresh panic.
World no.2 crypto Ethereum dropped 5.7% to $2,826.92.
World no. 3 crypto XRP slumped 7.3% to $2.03.
Solana plunged 7.5%, while Cardano declined 8% and Polygon lost 6.5%.
Among meme tokens, Dogecoin sank 8% and $TRUMP retreated 5%.