Bitcoin moved slightly higher on Tuesday, recovering from a sharp selloff in the prior session that pushed the world’s largest cryptocurrency below $84,000. The downturn reflected a renewed wave of risk aversion across digital asset markets at the start of December.
The drop surprised traders, coming just days after Bitcoin had bounced back from levels near $80,000 late last week.
By 01:58 ET (06:58 GMT), Bitcoin was trading 0.6% higher at $87,087.6. This followed Monday’s decline of more than 7%, which briefly sent the token under the $84,000 mark.
Bitcoin’s December slide sparks renewed jitters
Monday’s decline extended the downtrend that dominated November — Bitcoin’s worst monthly performance in more than four years. Spot Bitcoin ETFs also saw significant outflows throughout the month.
Market sentiment remained fragile, with mounting concerns that institutional appetite may be weakening. Analysts noted that increased whale inflows to major exchanges, combined with algorithmic selling, accelerated the downturn.
While Bitcoin stabilized slightly on Tuesday, it did little to ease fears of deeper weakness. A Coindesk report suggested the cryptocurrency could fall toward the $60,000–$65,000 range if selling persists.
The latest retreat was driven by profit-taking, thin trading volumes, and caution ahead of several key macroeconomic events expected this month.
Expectations for a Federal Reserve rate cut next week have risen to nearly 90%, which could support risk assets. However, uncertainty about the pace and timing of future policy easing continues to inject volatility across crypto markets.
Investors are also watching developments in Washington as President Donald Trump prepares to select a successor to Federal Reserve Chair Jerome Powell.
Strategy warns on earnings as Bitcoin weakness deepens
Shares of Strategy Inc (NASDAQ:MSTR) tumbled on Monday after the company cut its full-year outlook, citing heavy Bitcoin losses and ongoing volatility across the broader crypto market. The firm said these factors had significantly weakened its earnings projections.
Other crypto-related stocks also declined. Coinbase (NASDAQ:COIN) fell about 5%, while Robinhood (NASDAQ:HOOD) dropped more than 4%.
Altcoins trade mixed
Altcoins moved within narrow ranges on Monday as caution dominated the market.
Ethereum, the second-largest cryptocurrency, slipped 0.3% to $2,814.92.
XRP fell 1.1% to $2.02.
Solana traded slightly higher, Cardano rose 2%, while Polygon dropped 3.5%.
Among meme tokens, both Dogecoin and $TRUMP edged 0.6% lower.
