Bitcoin falls
Bitcoin started the week with a big fall. The price dropped from about $91,000 to nearly $84,000 on Monday. Analysts said the drop came because traders worry that the Bank of Japan may raise interest rates. Such a move could reverse trades funded by the yen. These trades have supported risky assets like US stocks and Bitcoin. The fall reminded investors of August 2024, when Bitcoin lost 18 percent in a few days before bouncing back. Nic Puckrin, co-founder of Coin Bureau, said the market could remain volatile. He also said long-term conditions are still positive. Many traders expect the US Federal Reserve to cut interest rates in December, which could help risk assets.
Low confidence despite recovery
By Tuesday, Bitcoin had recovered to around $87,500. Analysts said buyers stepped in near the $84,000–$85,000 support level. After the initial selling, the market stabilized and Bitcoin moved back above $86,000. Despite the recovery, investor confidence is low. Bitcoin ETFs saw outflows of about $3.5 billion in November, their second-worst month this year. Bitcoin is also more than 30% below its October record high of over $126,000. Analysts said these outflows show that institutional investors remain cautious.
Possibility of limited gains
10X Research said a strong rally before the end of 2025 is unlikely. The firm said the market may improve in 2026, but major gains are not expected in the coming weeks. Analysts said if Bitcoin stays above $85,500, it could test resistance at $87,500–$88,000. A clear rise above $88,000 may push it toward $90,000. They added that signals from the US Federal Reserve will continue to drive market sentiment.
Crypto stocks follow
Crypto-related stocks have also fallen. Coinbase Global dropped about 20% in the past month, Circle fell 38% , and Robinhood Markets lost around 16%. MicroStrategy, a large Bitcoin holder, fell almost 40%. Bernstein analysts said weak Bitcoin prices have affected crypto equities.
