Bitcoin slides below $86,000 with crypto markets under pressure

Bitcoin fell below $86,000 for the first time in two weeks as investor sentiment weakened and the cryptocurrency moved closer to its yearly lows.

The largest digital asset dropped as much as 3.7% to $85,171 on Monday. It later recovered slightly in Asian trading before slipping again to about $85,575 around midday in Hong Kong.

Bitcoin is now down roughly 30% from its record high of more than $126,000 reached in early October. Analysts said recent price rebounds have been met with selling by investors who bought near that peak.

Trading has remained choppy within a range of roughly $85,000 to $94,000. Volumes across crypto markets have stayed low, reflecting limited investor interest, according to Bohan Jiang, a senior derivatives trader at FalconX.

Bitcoin has declined alongside other risk assets in recent weeks but has failed to rebound when those markets recovered. This marks a break from its typical positive correlation and points to weak liquidity and fading risk appetite.

The decline has continued despite the Federal Reserve’s rate cut last week. Analysts said the move underscores ongoing caution among investors.

Traditional markets also showed uncertainty at the start of the final full trading week of 2025. Stocks, bonds, and the dollar wavered as investors awaited key economic data that could influence the Fed’s rate outlook.

Bitcoin’s selloff has been driven more by spot and derivatives positioning than by forced liquidations, said Chris Newhouse, director of research at Ergonia. He said liquidation data suggests over-leveraged positions were already cleared earlier.

That selling pressure appears more organic and could prove more persistent, Newhouse said.

Michael Saylor’s Strategy Inc. continued to buy Bitcoin during the downturn. The company said it acquired nearly $1 billion worth of the cryptocurrency for a second straight week.

Most of the purchases were funded through at-the-market sales of Class A common stock. Strategy also sold shares from three of its four classes of perpetual preferred stock. Critics have raised concerns about shareholder dilution and the shrinking premium of the stock relative to its roughly $59 billion Bitcoin holdings.

Other cryptocurrencies fell more sharply. Ether, Dogecoin, and XRP each declined around 5%, while crypto-related stocks also dropped. Coinbase Global slid about 7%, and Strategy shares fell more than 9% at one point.

The selloff triggered about $520 million in liquidations of bullish bets across digital assets in the past 24 hours, according to Coinglass data.

Bitcoin previously touched a 2025 low near $74,400 in April after President Donald Trump’s initial tariff plan disrupted global markets.