Pi Coin plunged 32%, underscoring acute market stress and renewed downside risk for small investors. The token’s 44% three-month decline and “extreme fear” sentiment point to sustained selling rather than a transient correction.
Pi Coin’s chart behavior in early December encapsulates the concern. The token recorded a 32% drop on December 9, 2025 and a 44% decline over the prior three months, signaling sustained selling pressure rather than a transient correction. Sentiment measures amplified that technical picture: the Fear & Greed Index registered 16 in early December 2025, classified as “extreme fear,” while 18 of 22 tracked sentiment indicators were pointing bearish around the same period. Those metrics suggest a durable negative trend, raising the statistical likelihood of new lows rather than an imminent rebound.
Regulatory statements and legal action have materially increased the project’s hazard profile. On December 5, 2025, seven major Chinese financial associations labeled Pi Network a “valueless virtual asset,” following an earlier February 2025 advisory from the Ministry of Public Security that categorized Pi Coin as illegal fundraising. A U.S. federal lawsuit filed on October 24, 2025 alleges securities fraud, token manipulation and centralization by Pi Network’s founders, introducing potential litigation-driven tail risks.
“The confluence of brutal price action, stern regulatory warnings, and significant legal challenges paints a stark picture of escalating danger for the unwary,” said Crypto News. These developments can restrict access, depress adoption and increase selling incentives among holders exposed to jurisdictional enforcement.
Price action and market sentiment for Pi Coin
The network’s Open Mainnet, launched on February 20, 2025, was a major operational milestone that has not stabilized valuation. Mainnet activation introduced token unlock dynamics and airdrop-related supply flows, which market participants identify as additional near-term selling pressure. Institutional caution has not been alleviated by the transition to mainnet; instead, distribution mechanics and ongoing legal/regulatory uncertainty appear to dominate price formation, reducing the likelihood that technical relief will sustain without clearer compliance signals or legal resolution.
Pi Coin’s December drawdown, layered with regulatory edicts from a major market and an active U.S. lawsuit, creates an elevated-risk environment for retail buyers attempting to “buy the dip.” The combined technical, regulatory and legal indicators point to asymmetric downside risk that investors should factor into position sizing and exit planning.
