Bitcoin Sinks Below $87,000 as Renewed Volatility Rattles the Crypto Market
Bitcoin drifted under the $87K mark on Monday, posting its steepest decline in several weeks as a new burst of market turbulence swept through the crypto landscape. The drop wiped out the gains accumulated last week and signaled a resurgence of selling pressure across top digital assets.
In early Asian hours, BTC touched a session low near $86,125, sparking more than $400 million in leveraged wipeouts. The rapid shakeout shaved roughly 4% off the global crypto market valuation, which now hovers close to $3 trillion. Many traders were positioned for an upward move—only to be caught off guard by another swift reversal.
Major altcoins extend losses as November weakness carries into December
Ether tumbled more than 6%, slipping beneath the $2,900 range, while Solana followed suit with a drop of nearly 7%, continuing the broader decline among leading cryptocurrencies.
The pullback comes immediately after a punishing November, during which Bitcoin ended the month down 18%—its worst monthly performance since March—despite recovering from the $80K region to over $90K mid-month. ETH fared even worse, finishing November with a 22% drawdown.
Market confidence remains fragile after nearly $19 billion in leveraged positions were liquidated in early October, just days after Bitcoin set a record high near $126,251. BTC weakened again in November, briefly steadied above $90K last week, and has now retreated once more as sellers take the upper hand.
Sean McNulty, derivatives head for APAC at FalconX, commented:
“It’s a cautious start to December. Soft ETF inflows and the absence of strong dip-buying are the main risks. The $80,000 area is the next major support we’re watching.”
ETF inflow slowdown and stability worries intensify selling pressure
Investor sentiment took another hit after Strategy Inc. CEO Phong Le revealed the company would unload Bitcoin if its mNAV (enterprise value compared to BTC reserves) fell below 1. The firm currently holds around $56 billion in BTC, and its mNAV has already slipped to 1.19.
Adding to market anxiety, S&P Global Ratings lowered its stability outlook on USDT last week, cautioning that a deeper Bitcoin correction could strain the stablecoin’s backing. Tether CEO Paolo Ardoino pushed back, insisting the company remains more than fully capitalized and that critics in traditional finance underestimate its resilience.
Macro environment may dictate Bitcoin’s next big move
This week’s US economic data will play a key role in shaping expectations for future rate cuts as policymakers evaluate momentum heading into 2026. These developments may heavily influence the Federal Reserve’s upcoming decisions. President Donald Trump also announced he has selected his preferred nominee for the next Fed chair—hinting he favors someone supportive of lower interest rates.
Asian markets were mixed on Monday despite their strongest weekly performance in two months. Japanese equities fell while the yen strengthened after Bank of Japan Governor Kazuo Ueda suggested a potential rate hike could arrive this month.
