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The crypto market fell 1.61% in the last 24 hours, extending its 30-day decline to 18.65%. The drop comes as a combination of regulatory pressure, profit-taking, and persistent risk-off sentiment continues to weigh on traders. With liquidity thinning out and fear dominating sentiment indicators, the market is showing clear signs of stress ahead of a volatile December. Total crypto market cap in USD over the past month – TradingView Below is the deep dive into the three main drivers behind the latest downturn. 1. Regulatory Pressure Hits Markets (Bearish Impact) Overview The UK has officially confirmed new crypto tax reporting rules, requiring exchanges to share user transaction data with tax authorities starting January 2026. Analysts say this could significantly raise compliance costs for major platforms like Kraken and Binance, and potentially discourage retail traders who fear more aggressive taxation. What It Means for the Market Regulatory uncertainty almost always triggers near-term selling. With exchanges facing heavier reporting duties, traders pulled back, resulting in: 24h derivatives volume dropping 8.54% Lower speculative activity across major pairs Increased caution among retail traders This regulatory overhang added pressure during an already weak liquidity environment. Watch For How top exchanges adjust to the new reporting standards Whether retail volume in the UK continues declining into Q1 2026 Updates from compliance-heavy platforms like Binance and Kraken 2. Sentiment Frozen in Fear (Bearish Impact) Overview The Fear & Greed Index remains stuck at 20 (“Fear”), unchanged from last week, despite Bitcoin gaining 7.38% over the same period. Traders appear hesitant to chase upside, preferring hedging strategies. Fear and greed index over the past month – cmc Open interest for perpetual futures rose 1.53%, suggesting that traders are positioning for uncertainty rather than recovery. The Altcoin Season Index sits at 22/100, confirming capital is defensive and continues flowing…

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Filed under: News - @ November 29, 2025 3:26 pm