- Bitcoin dropped below US$87,000 as a renewed risk-off mood hit the crypto market, pulling major tokens lower.
- Weak ETF inflows and concerns over potential Bitcoin sales from Strategy added further pressure to an already fragile market.
The crypto market opened December with renewed weakness as major assets slipped sharply, unsettling traders who had hoped the recent stabilization would hold. Bitcoin’s decline below $87,000 triggered fresh anxiety across the market, with investors preparing for the possibility of deeper losses.
Bitcoin Falls as Risk-Off Sentiment Grips the Market
Bitcoin slid 5.1% in early Asia trading, dropping under the $87,000 level. Ether followed with a 6% pullback below US$2,900, while Solana fell more than 7%. The sell-off renewed pressure on a market still recovering from a multi-week downturn that erased US$19 billion in leveraged bets in October, shortly after Bitcoin hit its all-time high of US$126,251.
The brief recovery last week, which pushed Bitcoin back above $90,000, proved short-lived. Traders now warn of increased vulnerability as liquidity weakens and ETF inflows remain muted.
ETF Weakness and Lack of Dip Buyers Add Pressure
FalconX APAC derivatives trading lead Sean McNulty described the atmosphere as “a risk-off start to December,” pointing to disappointing Bitcoin ETF inflows and a lack of strong buying interest. He noted that structural challenges are likely to continue throughout the month, with $80,000 emerging as the next critical support level that market watchers are monitoring closely.
Strategy Hints at Possible Bitcoin Sales
Investors also reacted to comments from Strategy CEO Phong Le, who said on Nov 28 that the company could sell Bitcoin if its mNAV, a metric comparing enterprise value to Bitcoin holdings, turns negative. While he said this would be a last resort, the firm’s current US$56 billion Bitcoin stockpile and a falling mNAV of 1.19 have intensified scrutiny.
A potential sale from a major corporate holder adds another layer of uncertainty to an already fragile market.
Macro Forces Add to Volatility
Adding to the pressure, market participants are looking ahead to key US economic data that will influence expectations for further interest-rate cuts heading into 2026. With President Donald Trump already hinting at his preferred pick for Federal Reserve chair, rate-cut expectations could shift quickly based on upcoming indicators.
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