December 1, 2025: Bitcoin Selloff and Spillover Risks to Nasdaq Futures

This analysis is based on the WSJ report [1] published on December 1, 2025, which highlighted Bitcoin’s fresh pressure amid premarket declines in U.S. stock futures. Multiple factors contributed to the selloff: a Yearn Finance pool breach [2], China’s central bank warning against cryptocurrency speculation [3], and a broader shift to risk-off sentiment [4].

• Cryptocurrency Market Impact
  : Bitcoin (BTC) dropped 5% to below $86,000, marking its largest one-day decline since early November 2025 [4]. Ethereum (ETH) also fell 5.5% [2]. Bitcoin’s monthly MACD indicator turned bearish, signaling potential prolonged downside volatility [7].
• U.S. Stock Futures
  : Nasdaq-100 futures (NQ00) declined 0.6–0.9% premarket, with S&P 500 futures down 0.7% [5][6]. This reflected spillover risk aversion from the crypto selloff, as tech stocks in the Nasdaq are often classified as high-risk assets alongside cryptocurrencies.
• Crypto-Related Stocks
  : Bitfarms (BITF), a Bitcoin miner, saw a 9.48% premarket drop to $3.15 [3] but recovered during regular trading to close up 1.86% at $3.29 [0].

1. Spillover Risk between Cryptocurrency and Tech Markets
   : The premarket decline in Nasdaq futures indicates that risk sentiment shifts in the crypto market can quickly impact tech-heavy stock indices, highlighting the increasing correlation between these asset classes.
2. Intraday Market Resilience
   : Bitfarms’ recovery from premarket losses to a positive close suggests that some investors may view short-term crypto selloffs as buying opportunities, though the sustainability of this resilience remains to be seen.
3. Regulatory and Security Events Amplify Volatility
   : Both the Yearn Finance breach and China’s regulatory warning amplified the selloff, demonstrating that unforeseen security incidents and regulatory announcements can significantly disrupt cryptocurrency and related equity markets.

1. Cryptocurrency Volatility
   : Bitcoin’s bearish MACD signal and proximity to its eight-month low of $80,553 [4][7] suggest potential for continued downside volatility, which could pressure high-risk assets further.
2. Spillover to U.S. Tech Stocks
   : Persistent crypto selloffs may continue to weigh on the Nasdaq, as investors reduce exposure to high-growth, risk-sensitive assets [5][6].
3. Regulatory Uncertainty
   : China’s anti-speculation warning could precede broader global cryptocurrency regulations, which may negatively impact crypto-related equities [3].

The intraday recovery of Bitfarms (BITF) [0] indicates that short-term price dips in crypto-related stocks may present tactical trading opportunities for investors with high risk tolerance. However, this is balanced by the broader bearish signals in the cryptocurrency market.

• Bitcoin fell 5% to below $86,000 on December 1, 2025 [2][4][7].
• Nasdaq-100 futures declined 0.6–0.9% premarket [5][6].
• Bitfarms (BITF) dropped 9.48% premarket but closed up 1.86% at $3.29 [0][3].
• Key drivers: Yearn Finance breach [2], China’s regulatory warning [3], risk-off sentiment [4].
• Information gaps: Full details of the Yearn Finance breach, specific Chinese regulatory measures, and Nasdaq futures recovery during regular trading [2][3][5][6].