Market Drops Sharply to Start December

#Bitcoin fell about 6%, dropping below $86K.
#Ethereum dropped over 7% to around $2,800.
The move continues the late-November sell-off as markets flipped into “risk-off” mode.
#DeFi Issues Add Pressure (Yearn yETH Incident)
A problem involving Yearn Finance’s yETH liquidity pool caused panic across DeFi.
This amplified selling pressure across major altcoins.
Some analysts call it a “mini-contagion event.”

Macro Factors: End of Quantitative Tightening
The Federal Reserve ended its quantitative tightening (QT) program today.
Analysts say this could boost liquidity, which is historically bullish for crypto.
But markets haven’t responded yet due to broader risk-off sentiment.

Global Markets Also Turn Risk-Off
Traditional markets (stocks, bonds) also declined.
Crypto moved in sync, showing strong correlation to macroeconomic conditions.
Investors are cautious ahead of upcoming economic data releases.

China Pressures Crypto-Related Firms
Stocks of companies tied to crypto fell sharply in Hong Kong.
This came after China reiterated a crackdown on cryptocurrency trading and stablecoin activities.
While not directly affecting global crypto trading, it contributed to negative sentiment.

Lets see if BTC holds the $85K support zone.
and if ETH finds support around $2.8K.
If new liquidity from #QT ending might fuel a rebound later in the week.
Any further fallout from the Yearn/DeFi issue.