Bitcoin falls below $86,000

Cryptocurrencies witnessed a sharp decline today, which restored momentum to a widespread selling wave that seemed to have subsided in the previous days.

Bitcoin fell by up to 6% to below $86,000 during early trading in Asia, while Ether fell by more than 7% to below $2,800, according to data compiled by Bloomberg.

Most cryptocurrencies also fell, while Solana fell 7.8%.

The cryptocurrency market is on shaky ground after a weeks-long selling wave that began when approximately $19 billion in debt-financed bets were liquidated in early October, just days after Bitcoin hit a record high of $126,251.

The easing of selling pressures last week allowed the cryptocurrency to regain some gains, rising above $90,000.

The market is preparing for a bigger drop

After the new wave of selling today, traders are preparing for a bigger decline.

“It’s the beginning of risk aversion in December,” said Sean McNulty, head of derivatives trading for Asia Pacific at VolcanX.

“The biggest concern is the anemic inflows into Bitcoin ETFs and the absence of buyers on the dip. We expect structural headwinds to continue this month. We are monitoring the $80,000 level for Bitcoin as the next major support level,” he added.

Next week is expected to provide a critical indicator of the US economic momentum as policymakers evaluate the path of interest rates towards 2026.

The upcoming data is likely to affect expectations that the Federal Reserve will continue its rate-cutting cycle. US President Donald Trump said on Sunday that he had decided on his nominee to head the Fed, after making it clear that he expected his nominee to implement a rate cut.

Asian stock indices witnessed volatility in early trading after they ended last week with their best weekly performance in nearly two months, while S&P 500 futures declined slightly.