Bitcoin fell sharply on Monday, slipping below $86,000 in early Asian trade as renewed selling hit the cryptocurrency market at the start of December.
The world’s largest digital asset dropped by 6%. Ether also declined more than 7% to around $2,800, while other major tokens, including Solana also registered steep losses. Traders said that the broader slump signals a fresh risk-off mood among investors, according to a report by Bloomberg.
The crypto market has been struggling since a wave of leveraged positions. The market worth nearly $19 billion was wiped out in early October, shortly after Bitcoin touched a record high of $126,251. The token shed nearly 17% in November, although a brief recovery last week had lifted prices above $90,000.
“It’s a risk-off start to December,” said Sean McNulty, APAC derivatives trading lead at FalconX.
“The biggest concern is the meager inflows into Bitcoin exchange-traded funds and absence of dip buyers. We expect the structural headwinds to continue this month. We are watching $80,000 on Bitcoin as the next key support level,” McNulty added.
Sentiment weakened further after comments from Strategy Inc. CEO Phong Le, who said the company could sell some of its massive Bitcoin holdings if required to support dividends. Strategy holds about $56 billion worth of Bitcoin.
Adding to market jitters, S&P Global Ratings last week downgraded its stability assessment of USDT, the world’s largest stablecoin, citing the risk of under-collateralization if Bitcoin prices continue to fall.
Meanwhile, the People’s Bank of China issued fresh warnings over the risks of virtual currencies and urged tighter action against illegal crypto activities.
Market participants are now watching key US economic data due this week, which could influence expectations on future interest-rate cuts by the Federal Reserve.
US President
Donald Trump on Sunday said that he had finalized his choice for the next Fed chair, fueling further speculation over policy direction in 2026.
Crypto traders caution that volatility may remain high in the near term as global financial markets react to shifting rate expectations and regulatory signals.
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