Bitcoin and Ethereum Lose All YTD Gains Amid October 11 Liquidation Event and Deteriorating Macro Conditions

Based on MarsBit, on December 1, Bitcoin and Ethereum erased all year-to-date gains, marking a sharp reversal from Bitcoin’s $126,000 peak in October. VCs identified two main causes: the October 11 liquidation event and worsening macroeconomic conditions. Rob Hadick of Dragonfly noted the de-leveraging event, driven by low liquidity, poor risk management, and weak oracles or leverage mechanisms, caused major losses and uncertainty. Boris Revsin of Tribe Capital called it a 'leverage washout' with ripple effects. Macroeconomic factors include fading rate-cut expectations, stubborn inflation, weak labor markets, geopolitical risks, and rising consumer pressure. Anirudh Pai of Robot Ventures highlighted concerns over U.S. economic slowdown, with key indicators like the Citigroup Economic Surprise Index and 1-year inflation swaps weakening. Dan Matuszewski of CMS Holdings added that, aside from tokens with buyback mechanisms and DAT, the crypto market has seen little new capital inflow, accelerating the price decline as ETF inflows no longer provide support.