Bitcoin fell below $90,000 on Monday as a broad selloff in risk assets intensified, extending the cryptocurrency’s steepest monthly decline since mid-2021. At one point, the world’s largest digital coin dropped 6.1%, and by 1120 GMT, it was trading at $86,461, down 5.2% for the day, hovering near last month’s eight-month low of $80,553.
The selloff wiped out more than $18,000 in November, marking Bitcoin’s largest dollar loss since May 2021, when multiple cryptocurrencies collapsed. Ether also fell nearly 6% to $2,845, after a 22% drop in November, its worst monthly decline since February.
Analysts note that Bitcoin’s tight correlation with equities has amplified losses. Kathleen Brooks, XTB research director, said the cryptocurrency often signals broader risk sentiment, and its decline may weigh on stocks at the start of December. She added that a sharp drop in volatility last week, with the VIX falling below its 12-month average, may have unsettled investors.
Market indicators point to growing bearishness. CME Bitcoin futures for delivery in three months are trading at the narrowest premium to near-term contracts in at least a year, suggesting investors are less confident in a sustained price rebound.
Additional pressures came from negative industry developments. Jefferies strategist Mohit Kumar cited multiple factors, including last week’s S&P Global downgrade of Tether due to higher-risk reserves and disclosure gaps. Strategy, the world’s largest corporate Bitcoin holder, also signaled it could sell holdings if its mNAV metric fell below 1, currently at 1.19. Shares of Strategy, Coinbase, and miners Riot Platforms and MARA Holdings were down 3-4% in premarket trading.
Since peaking at roughly $4.3 trillion, the crypto market has lost over $1 trillion, highlighting the sector’s volatility and persistent investor caution. Index provider MSCI is reviewing whether to exclude companies with digital asset holdings exceeding 50% of total assets, potentially adding pressure to firms like Strategy.
