Bitcoin has dropped below $90,000, trading around $86,000–$86,400 amid heightened volatility and global risk-off sentiment. The fall marks its steepest monthly decline since 2021, with over $18,000 wiped off in November. Analysts cite investor caution, ETF outflows, and Federal Reserve policy uncertainty as key drivers behind the sudden downturn.
The world’s largest cryptocurrency, Bitcoin, opened December on a sharply negative note, plunging below the $90,000 mark. By Monday, it was trading near $86,461, reflecting a 5–6% decline in 24 hours and extending losses from November, when Bitcoin shed more than $18,000—its largest monthly dollar loss since May 2021.
Market experts attribute the decline to a broader risk-off sentiment, with investors pulling funds from both equities and digital assets amid uncertainty over Federal Reserve policy and slowing institutional inflows.
Major Takeaways
Price Drop: Bitcoin fell to around $86,000, its lowest since October’s eight-month low of $80,553.
Steep Monthly Losses: November saw Bitcoin’s largest dollar decline since 2021, erasing $18,000 in value.
Investor Sentiment: Risk aversion drove investors toward safe havens like gold and the Swiss franc.
ETF & Institutional Flows: Analysts highlight reduced ETF activity as a factor in weakening demand.
Volatility Outlook: Historically, December has been a positive month for Bitcoin, but current sentiment remains cautious.
Notable Updates
In Indian markets, Bitcoin’s value is hovering near ₹76.7 lakh per coin.
Analysts warn that if support at $86,000 breaks, prices could test $83,000–$85,000 before rebounding.
Despite short-term turbulence, long-term projections still see Bitcoin aiming for the $100,000 milestone.
Conclusion: Bitcoin’s slide below $90,000 underscores the fragile balance between optimism and caution in crypto markets. With policy uncertainty and investor sentiment driving volatility, December may prove pivotal in determining whether Bitcoin stabilizes or faces further downside.
Sources: Business Standard, Analytics Insight, Asharq Al-Awsat