If I had to sum up the crypto market on December 2 in one word, it would be: brutal.

Let’s start with the overall numbers. As of 4:00 PM Beijing time, the total market cap of the entire crypto space hovered between $3.7 and $3.8 trillion, evaporating nearly 1% in just 24 hours. Bitcoin held around $86,600, but yesterday it was hammered down to $83,786—that’s a 1% drop in a single day. It’s even worse for those trading with leverage: over 270,000 traders were liquidated in one day, with nearly $1 billion wiped out, and long positions accounted for 87% of that.

Major coins are each suffering in their own way. Bitcoin only dropped 1%, but key support levels are being tested one after another—$84,500, $83,000, $80,000, each one like a psychological barrier. Ethereum took a bigger hit, plunging -6.36%. At its current price of $2,810, many are watching the $2,700 and $2,620 support levels closely. As for the $2,900 resistance? That’s looking tough to break in the short term.

Behind this crash, macro factors are playing a big role. Hopes for a Fed rate cut in December have cooled significantly, with the probability dropping below 50%, and dollar liquidity is tightening. To make things worse, the US Treasury’s TGA account suddenly drained about $200 billion from the market—it’s like drawing blood. On top of that, the Bank of Japan has ended its ultra-loose monetary policy, so risk assets worldwide are adjusting.

Looking at market structure, the problems are clear. Bitcoin has fallen more than 33% from its all-time high of $126,250 in October. ETF inflows remain weak—everyone can see it, and sometimes there are even net outflows in a single day.

To put it plainly, the market is facing a squeeze in liquidity and structural fragility. Bulls need a much stronger catalyst, or this period of consolidation may last a while longer.