Bitcoin began December on a downward slide, dropping below $90,000 on Monday and extending losses after suffering its steepest monthly decline since the 2021 crypto crash. Renewed risk aversion pushed investors out of both stocks and digital assets, fueling a selloff that shows few signs of easing.
The world’s largest cryptocurrency fell as much as 6.1% during the session and was trading near $86,384 at the time of reporting, down nearly 5% and headed for its largest single-day fall in a month. The downturn leaves Bitcoin hovering near last month’s eight-month low of $80,553.
Market analysts observed that Bitcoin’s sharp fall below $86,000 coincided with a notable shift in wallet behavior. Large holders have slowed their accumulation, while smaller retail buyers have increased their purchases, an imbalance that often signals a late-cycle phase marked by fragility. Bitcoin has fallen considerably since setting an all-time high of $126,223 in early October.
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Further declines could send the price back toward the November 21 low of $80,553, a drop previously accelerated by concerns surrounding an emerging artificial-intelligence bubble. According to commentary from The Kobeissi Letter, the latest slide stemmed from thin weekend liquidity combined with record-high leverage, rather than fundamental weakness. The publication noted that Bitcoin plunged $4,000 within minutes despite the absence of market-moving news, triggering mass liquidations and a cascading selloff.
Victoria Scholar, head of investment at Interactive Investor, said BTC selling pressure appears persistent, “It feels like investors, big and small, are feeling very cautious toward cryptos in the short term at least”, she said.
Analysts widely agree that the $80,000–$85,000 range now represents critical support. A sustained hold above that zone could prompt stabilization or even a rebound in the coming weeks. However, a decisive breakdown could signal the start of a deeper retreat. Investors who bought near the October peak may have to wait significantly longer before returning to profit.
The broader crypto market mirrored Bitcoin’s decline. Ethereum slumped over 7% to around $2,800, while XRP, BNB, Solana, Cardano, and Tron also posted sharp losses. More than $564.3 million in long positions were liquidated, including $188.5 million tied to Bitcoin and $139.6 million linked to Ether. In total, both long and short liquidations erased approximately $641 million from the market.
The selloff is widely viewed as a “risk-off start to December,” as investors divest from riskier assets amid rising macroeconomic uncertainty. Expectations for swift interest-rate cuts from the Federal Reserve have diminished, while inflation remains stubborn in major economies. Consequently, risk assets including cryptocurrencies have come under renewed pressure.
Heatmap data viewed by Tekedia presents additional concerns. Bitcoin’s price has been consuming liquidity around $86,000, but substantial bid orders remain stacked between the current spot price and $79,600. This suggests a possible move lower to sweep remaining liquidity before any meaningful rebound.
Technically, Bitcoin confirmed a bear-flag pattern on the daily chart by dropping below the lower boundary at $90,300. Veteran trader Peter Brandt shared a macro-outlook indicating that Bitcoin could find long-term support within the $45,000–$70,000 zone.
Outlook
The crypto market now turns its attention to the first key economic events of December. The Fed’s preferred inflation gauge, due December 5, may sway expectations for rate cuts. A softer reading could lift sentiment, while a stronger print may apply additional downward pressure on crypto. Also, the U.S. CPI report follows on December 10 and is expected to further influence market outlooks ahead of the upcoming Federal Reserve decision.
With both inflation readings scheduled before the Fed meeting, markets may undergo multiple sentiment resets within days. As highlighted by Cointelegraph, Bitcoin’s current trajectory is closely mirroring the 2022 bear market, with a near-perfect correlation so far in 2025. If the pattern holds, a sustained rebound may not materialize until well into the first quarter of next year.