Bitcoin briefly dips below $85,000 in crypto rout
[December 02, 2025] Bitcoin
and companies tied to cryptocurrencies extended a nearly two-month swoon
Monday, tracking with a broader market sell-off in technology companies
that many see as overvalued.
Bitcoin slid 5.6% after being down nearly 12% earlier in the day,
settling in just above $86,000. Early Tuesday, it was trading around
$86,650.
The most-traded cryptocurrency is down about 33% since hitting a record
$126,210.50 on Oct. 6, according to crypto trading platform Coinbase.
Bitcoin had soared since April in line with the stock market and driven
partly by a more crypto-friendly tone in Washington.
Companies that enable investors to buy and sell cryptocurrencies, as
well as the growing number of companies who have made investing in
bitcoin their main business focus, were hammered in Monday's sell-off.
Coinbase Global fell 4.8% and online trading platform Robinhood Markets
lost 4.1%. Bitcoin mining company Riot Platforms dropped 4%.
Strategy, the biggest of the so-called crypto treasury companies that
raises money just to buy bitcoin, fell 3.3%. The company has reported
holding 649,870 bitcoin. As of 4 p.m. EST Monday they were worth about
$55.7 billion. Earlier, Strategy said it expects bitcoin to end the year
between $85,000 and $110,000, down from an Oct. 30 forecast of $150,000.
American Bitcoin, in which President Donald Trump's sons Eric Trump and
Donald Trump Jr. hold a stake, fell 15.6% and is now down nearly 47%
since Sept. 30.
Other Trump-related crypto ventures have declined as well. The market
value for the World Liberty Financial token, or $WLFI, has fallen to
about $4.14 billion from above $6 billion in mid-September, according to
coinmarketcap.com And the price of a meme coin named for President
Donald Trump, $TRUMP, is $5.70, a fraction of the $45 asking price just
before his inauguration in January.
One popular way of investing in bitcoin is through spot bitcoin ETFs, or
exchange-traded funds, which allow investors to have a stake in bitcoin
without directly owning the cryptocurrency. According to data from
Morningstar Direct, investors pulled $3.6 billion out of spot bitcoin
ETFs in November, the largest monthly outflow since the ETFs began
trading in January 2024.
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Bitcoin tokens are seen on April 3, 2013, in Sandy, Utah. (AP
Photo/Rick Bowmer, File)
 Bitcoin futures are down nearly 24%
in the past month. At the same time, gold futures are up almost 7%.
Analysts point to a number of factors that have led to the sell-off
in bitcoin and other crypto investments, including a broad risk-off
sentiment that has gripped markets this fall, sending investors
toward safer havens such as bonds and gold.
In a research note to clients last week, Deutsche Bank analysts also
attributed the recent declines in crypto to institutional selling,
other long-term holders collecting profits and a more hawkish
Federal Reserve. Stalled crypto regulation has also contributed to
the uncertainty, Deutsche Bank said.
“While volatility remains inherent, these conditions indicate
Bitcoin’s portfolio integration is being tested, and raises
questions of whether this is a temporary correction or a more
prolonged adjustment,” the analysts wrote.
On the regulatory front, the crypto industry received a boost in
July when Trump signed into law regulations that set initial
guardrails and consumer protections for stablecoins, which are tied
to assets like the U.S. dollar to reduce price volatility compared
with other forms of cryptocurrency.
But a bill that creates a new market structure for cryptocurrency
remains stalled in the Senate. The bill has been a top priority for
the crypto industry since it spent heavily to elect Trump and
install other allies in Washington.
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