Bitcoin edged higher on Tuesday after a steep selloff in the previous session that drove the world’s largest cryptocurrency below $84,000, as a renewed bout of risk aversion hit digital assets at the start of December.
The decline caught traders off guard, coming just days after Bitcoin had rebounded from levels near $80,000 late last week.
The world’s largest cryptocurrency last traded 0.6% higher at $87,087.6 by 01:58 ET (06:58 GMT). It fell more than 7% to below $84,000 on Monday.
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Bitcoin slides at Dec start amid fresh panic
Monday’s slide marked the latest extension of a downtrend that dominated November, when Bitcoin suffered its worst monthly performance in more than four years, and spot Bitcoin ETFs recorded heavy outflows.
The sentiment continued to weigh on crypto markets, reinforcing worries that institutional demand remains fragile. Reports showed that the rapid build-up of whale inflows to major exchanges, alongside algorithmic selling, helped accelerate the drop.
The token, briefly steadying on Tuesday, did little to ease concerns about broader market weakness. A Coindesk report stated that Bitcoin could test the $60,000-$65,000 range if declines continue.
The risk-off move was driven by a combination of profit-taking, thin liquidity, and caution ahead of several macroeconomic triggers this month.
Expectations for a Federal Reserve rate cut at next week’s meeting have risen to nearly 90%, raising hopes of easier financial conditions, but the uncertainty around the exact timing and scale of future policy easing continues to inject volatility into crypto markets.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Investors are also watching developments in Washington, where President Donald Trump is expected to decide on a successor to Fed Chair Jerome Powell.
Strategy cuts earnings guidance amid Bitcoin slide Shares of Strategy Inc (NASDAQ:MSTR) fell sharply on Monday after the company slashed its full-year guidance, warning that the deepening sell-off in Bitcoin and continued volatility across crypto markets had severely weakened its earnings outlook.
Other crypto-related stocks also fell on Monday. Coinbase (NASDAQ:COIN) dropped about 5%, while Robinhood (NASDAQ:HOOD) slipped more than 4%.
Crypto price today: altcoins subdued Most altcoins traded in tight ranges on Monday amid a cautious mood.
World no.2 crypto Ethereum edged 0.3% lower to $2,814.92.
World no. 3 crypto XRP fell 1.1% to $2.02.
Solana edged slightly higher, and Cardano gained 2%, while Polygon gained fell 3.5%.
Among meme tokens, both Dogecoin and $TRUMP edged 0.6% lower.
