Bitcoin was last down 6% at $85,788 and earlier dropped as much as 8% to $83,879.01
Bitcoin slumped on Monday, with the world’s largest cryptocurrency down nearly 6% and on track for its biggest daily percentage decline since early November, as risk aversion drove investors out of digital and other assets.
Bitcoin was last down 6% at $85,788 and earlier dropped as much as 8% to $83,879.01.
The day’s move followed bitcoin’s biggest monthly drop since mid-2021. Bitcoin shed more than $18,000 in November, as a record amount of money rushed out of the market, making this its largest dollar loss since May 2021, when a number of cryptocurrencies collapsed.
Adding to bearish sentiment around bitcoin on Monday, Strategy – the largest corporate holder of bitcoin – cut its earnings forecast for 2025, citing the weak run in bitcoin. Strategy’s shares dropped 3.3%.
Over the last 24 hours, crypto liquidations in both long and short positions totalled nearly $1 billion, according to CoinGlass.
Bitcoin seems to be suffering from a fading enthusiasm across crypto as well as the tech world, said Juan Perez, director of trading at Monex USA in Washington (US).
The negativity at the moment seems tied to growing concerns about increased market concentration and questionable sustainability of overall growth in that sector, considering the issues of infrastructure as well as less cooperation in trade globally, he said.
Ether also dropped on Monday and was last 8.8% lower at $2,756. It shed around 22% in value in November, the most since February’s 32% decline.
Given its short lifespan, there is not much seasonality to guide traders’ expectations for how bitcoin usually behaves in December.
On average, bitcoin has tended to rise by around 9.7% in December, ranking it third in terms of performance. October is typically the strongest month, with an average gain of 16.6%, and September the weakest month, with an average loss of 3.5%.
Some strategists were keeping a close eye on bitcoin’s correlation with the stock market. Some see bitcoin as a possible leading indicator for risk assets.
Joe Saluzz, co-founder of Themis Trading in Chatham, New Jersey (US), said crypto and stocks may be linked via exchange-traded funds but are not always correlated.
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