Crypto Market Pulls Back: Bitcoin Dips Below $93K as PayFi and DeFi Lead Declines
The cryptocurrency market experienced a broad‑based pullback on December 5, 2025, following several days of steady gains. The PayFi sector led the losses, with a nearly 4% decline, while major cryptocurrencies like Bitcoin and Ethereum also saw red.
Key Price Movements
Bitcoin dipped 1.06% to fall below $93,000, while Ethereum dropped under $3,200. XRP slid 4.37%, and market sentiment around XRP hit its highest panic level since October, according to on‑chain analytics firm Santiment.
Tokens That Outperformed
Despite the overall downturn, some tokens outperformed: Dash and Ultima climbed over 3% and 5% respectively, Zcash spiked 10% in the Layer 1 sector, and Merlin Chain surged nearly 10% intraday. Other major sectors, including CeFi, Layer 2, Meme, and DeFi, posted declines. However, there were pockets of strength with tokens like OKB, Fartcoin, and MYX Finance recording notable gains.
XRP Panic Levels
Santiment noted that the last comparable spike in panic for XRP occurred on November 21, when XRP went on to jump 22% in the following three days. The firm suggests a similar setup may now be forming. While the crypto market saw a pullback on December 5, there were still some tokens that managed to post gains. The market sentiment around XRP hit extreme panic levels, which could indicate a potential rebound in the near future.
Conclusion
The pullback underscores the volatility inherent in crypto markets, but the selective strength of certain assets shows that opportunities remain for savvy traders. Keep an eye on panic indicators and sector performance as the market seeks its next direction.
