Bitcoin has experienced a notable decline, slipping below $86,000 and marking its lowest point in two weeks. This downturn reflects a growing sense of weakness among investors as the leading cryptocurrency continues to delve deeper into bear market territory. Analysts indicate that Bitcoin has been approaching the lower end of its recent trading range, where any rises in price are quickly met with selling pressure from those who invested near the all-time high in early October.
On Monday, Bitcoin fell by as much as 3.3%, settling at approximately $85,578. This reflects a significant drop of around 30% from its record high of over $126,000. Bohan Jiang, a senior derivatives trader at FalconX, commented on the current market trend: “We’ve continued to trade this very choppy range between 85k-94k in BTC, with a continued lack of interest and low volumes broadly across crypto markets.”
The cryptocurrency has continued to decline alongside other risk assets in recent weeks, failing to rebound as they have shown resilience. This disconnect highlights a market grappling with diminished liquidity and waning risk appetite, particularly after the Federal Reserve’s recent rate cut did not reignite momentum in digital assets.
As Wall Street braces for vital economic data that could influence the Federal Reserve’s interest rate strategy, the last full trading week of 2025 has shown stocks, bonds, and the dollar exhibiting volatility. Jiang remarked, “I would say that broadly, BTC/crypto continues to follow weakness in equity markets, with the sell-off in sync with equities market as they opened higher and headed lower throughout the US session.”
Despite these market challenges, Michael Saylor’s Strategy Inc. has been undeterred, acquiring nearly $1 billion in Bitcoin for the second consecutive week. The company has primarily funded these purchases through proceeds from at-the-market sales of its Class A common stock. However, this strategy has drawn criticism, with some analysts concerned that such sales dilute existing shareholders and undermine the previously higher premium the stock once held relative to its now approximately $59 billion Bitcoin holdings. Additionally, Strategy has engaged in selling shares from three of its four classes of perpetual preferred shares to finance these acquisitions.
Other cryptocurrencies were not spared from the day’s downturn, with Ether, Doge, and XRP each witnessing declines of approximately 5%. Shares linked to the crypto market likewise faced difficulties, with Strategy’s stock dropping over 8% and Coinbase Global Inc. reducing by almost 6%.
