Bitcoin (COIN:BTCUSD) inched higher early Tuesday, staging a mild recovery after a heavy selloff at the start of the week that briefly pushed the token below $84,000. The renewed wave of risk aversion that hit digital assets on Monday added to the volatility that closed out November.
The reversal caught traders off guard, coming just after Bitcoin bounced off the $80,000 area late last week. By 01:58 ET (06:58 GMT), the cryptocurrency was up 0.6% at $87,087.6, having slumped more than 7% on Monday.
Fresh December weakness follows bruising November
Monday’s slide extended a downtrend that has dominated the past month, with Bitcoin logging its worst November performance in more than four years and spot Bitcoin ETFs facing sizable outflows.
Caution continued to hang over the market on Tuesday. Analysts cited a combination of rising whale inflows to exchanges and algorithmic selling as catalysts that intensified the downturn. The modest rebound did little to calm nerves, and CoinDesk reported that Bitcoin may fall toward the $60,000–$65,000 range if pressure persists.
The broader retreat has been driven by a mix of profit-taking, thin liquidity, and general hesitation ahead of a busy month for macro events.
Expectations for a Fed rate cut next week have climbed toward 90%, boosting hopes for looser monetary conditions. However, uncertainty around the scale and pace of easing continues to inject swings into crypto trading.
Investors are also watching political developments in Washington, where President Donald Trump is preparing to choose a candidate to succeed Fed Chair Jerome Powell.
Strategy Inc slashes outlook as crypto slump deepens
Shares of Strategy Inc (NASDAQ:MSTR) sank sharply Monday after the firm cut its full-year forecast, citing the worsening downturn in Bitcoin and continued turbulence across crypto markets.
Other crypto-exposed stocks also weakened:
- Coinbase (NASDAQ:COIN) dropped around 5%
- Robinhood (NASDAQ:HOOD) lost more than 4%
Altcoins see muted trading
Trading across the altcoin space remained subdued as sentiment stayed cautious.
- Ethereum dipped 0.3% to $2,814.92
- XRP fell 1.1% to $2.02
- Solana posted a marginal gain
- Cardano advanced 2%
- Polygon declined 3.5%
Among meme tokens, both Dogecoin and $TRUMP fell 0.6%.