Crypto Market Begins December on a Negative Note
The global crypto market opened December with sharp losses, continuing the weakness seen throughout November. Major cryptocurrencies, including Bitcoin, Ethereum, XRP, SOL, and DOGE, traded lower in the early Asian session after Yearn Finance confirmed an “incident” in its yETH liquidity pool.
Key Highlights
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Major cryptocurrencies fell sharply on Monday.
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A security incident at Yearn Finance triggered panic across the market.
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Over $400 million in leveraged positions were liquidated.
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November ended with heavy losses for both BTC and ETH.
Crypto Prices Slide After Yearn Finance Alert
Bitcoin (BTC) fell more than 3%, trading near $87,000.
Ether (ETH) dropped by 5%, while XRP, SOL, and DOGE slipped over 4%, according to market data.
The decline intensified after Yearn Finance posted an alert on X (formerly Twitter), reporting an “incident” in its yETH pool. The platform assured users that its V2 and V3 Vaults remain secure and unaffected.
What Happened at Yearn Finance?
Early analysis from blockchain communities suggests that an attacker found a vulnerability and used it to mint a large amount of yETH in a single transaction. This action drained the pool’s liquidity and allowed the attacker to escape with around 1,000 ETH (worth roughly $3 million).
Additional details:
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Total protocol loss: Approximately $9 million
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1,000 ETH was moved through Tornado Cash, a popular crypto mixer
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The attacker’s wallet (0xa80d…c822) still holds nearly $6 million in tokens, according to security firm PeckShield
Another Blow to Crypto Security
This incident comes shortly after South Korea’s major exchange Upbit suffered a multi-million-dollar hack, raising serious concerns about the security of DeFi platforms and exchanges despite growing institutional investment in crypto.
Massive Liquidations Hit Futures Market
The sudden sell-off triggered more than $400 million in crypto futures liquidations, mostly affecting traders holding long positions. Many traders were expecting a market recovery, leaving them unprepared for the sharp downturn.
November Was One of the Worst Months for Crypto in 2025
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Bitcoin closed November with a 17.5% loss, its worst monthly drop since March.
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Ethereum fell 22%, marking its weakest performance since February.
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Despite a brief recovery from $80,000 to above $90,000, BTC still ended the month in the red.
The poor performance was influenced by falling institutional demand.
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U.S. spot Bitcoin ETFs saw $3.48 billion in outflows — the second-largest monthly withdrawal on record.
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Ether ETFs recorded $1.42 billion in outflows — the highest ever.
