Bitcoin prices saw a mild rebound on Tuesday following a steep selloff in the previous session that drove the world’s largest cryptocurrency below $84,000, as digital assets faced a renewed wave of risk aversion at the start of December.
The drop caught traders off guard, coming just days after Bitcoin had recovered from levels near $80,000 late last week.
Bitcoin was last up 0.6% at $87,087.6 as of 01:58 New York time (06:58 GMT), after falling more than 7% below $84,000 on Monday.
Bitcoin slides into December amid fresh wave of panic
Monday’s decline extended the downtrend that dominated November — the cryptocurrency’s worst monthly performance in more than four years — alongside sizable outflows from spot Bitcoin ETFs.
Negative sentiment continued to pressure crypto markets amid rising concerns over weak institutional demand. Reports indicated that a rapid increase in “whale” inflows into major exchanges, combined with algorithmic selling, helped accelerate the downturn.
Although Bitcoin steadied slightly on Tuesday, the move did little to ease worries about broader market weakness. A CoinDesk report noted that Bitcoin could test the $60,000 to $65,000 range if declines persist.
The renewed risk-off move was driven by a combination of profit-taking, thin liquidity, and anticipation of several key economic catalysts this month.
Expectations for a Federal Reserve rate cut at next week’s meeting rose to nearly 90%, boosting hopes for monetary easing, though uncertainty surrounding the timing and magnitude of the upcoming easing cycle continues to add volatility to crypto markets.
Investors are also watching developments in Washington, where President Donald Trump is expected to decide on a successor to Federal Reserve Chair Jerome Powell.
Strategy cuts earnings guidance as Bitcoin drops
Shares of Strategy Inc (NASDAQ: MSTR) fell sharply on Monday after the company cut its annual earnings guidance, warning that the deepening Bitcoin decline and continued volatility in crypto markets had significantly weakened its profit outlook.
Other crypto-linked stocks also slipped on Monday: Coinbase (NASDAQ: COIN) dropped roughly 5%, while Robinhood (NASDAQ: HOOD) fell more than 4%.
Crypto prices today: Altcoins struggle
Most altcoins traded in tight ranges on Monday amid a cautious tone.
Ethereum, the second-largest cryptocurrency, slipped 0.3% to $2,814.92.
XRP, the third-largest token, declined 1.1% to $2.02.
