Bitcoin Plunges to $85,000 Amid Liquidity Concerns, Sparking Bear Market Fears

New York, NY – Bitcoin has seen a significant downturn, with its price sinking to approximately $85,000 on December 1, 2025, a notable drop from recent highs. The sharp decline has prompted widespread discussion across the cryptocurrency community, raising questions about the potential onset of a bear market.

Prominent crypto analyst Scott Melker, known as "The Wolf Of All Streets," highlighted the situation on social media, stating, > "Bitcoin Sinks To $85K As Liquidity Dries Up... Has The Bear Market Officially Begun? Let's Discuss LIVE @ 9am est on MACRO Monday🔥" His tweet underscored growing concerns over market stability and investor sentiment.

The current price point of $85,000 represents a substantial retreat from earlier 2025 projections, which often placed Bitcoin well above the $100,000 mark, with some forecasts reaching up to $250,000 or more. Just last month, Bitcoin had reportedly reached an all-time high of over $126,000 in October 2025, making the recent fall particularly impactful.

Analysts are pointing to "liquidity drying up" as a key factor in the current price pressure. Reduced liquidity means fewer buyers and sellers in the market, which can amplify price swings and make it harder for investors to execute large trades without significantly impacting the asset's value. This condition often precedes or accompanies periods of market instability.

A bear market in cryptocurrency is typically characterized by a prolonged period of falling prices, often defined by a 20% or more drop from recent highs, coupled with negative investor sentiment and reduced trading activity. Indicators such as declining trading volumes, sustained downward price trends, and a general lack of confidence are closely watched by market participants.

Scott Melker, a well-known figure in the crypto space, is a trader, investor, and podcast host whose insights are followed by a large audience. His assessment of "liquidity drying up" and the direct question about a bear market reflect the anxiety permeating the digital asset landscape. The discussion on his "MACRO Monday" live session is expected to delve into the macroeconomic factors influencing this downturn.

The crypto market has experienced a volatile year, with Bitcoin reaching a new all-time high in October 2025, but also facing significant pressure in the fourth quarter, including a crash below the $100,000 mark. The current price action suggests a challenging period for investors as they navigate uncertain market conditions and reassess future outlooks.