The world’s largest cryptocurrency traded 2.7% higher at $88,500
Bitcoin rebounded on Tuesday after a steep selloff in the previous session that drove the world’s largest cryptocurrency below $84,000, as a renewed bout of risk aversion hit digital assets at the start of December.
The decline caught traders off guard, coming just days after Bitcoin had rebounded from levels near $80,000 late last week.
The world’s largest cryptocurrency last traded 2.7% higher at $88,500 by 14:19 GMT. It dropped more than 7% to below $84,000 on Monday.
Monday’s decline marked the latest extension of a downtrend that dominated November, when Bitcoin suffered its worst monthly performance in over four years, and spot Bitcoin ETFs recorded heavy outflows.
The sentiment continued to weigh on crypto markets, reinforcing worries that institutional demand remains fragile. Reports showed that the rapid build-up of whale inflows to major exchanges, alongside algorithmic selling, helped accelerate the drop.
The token, briefly steadying on Tuesday, did little to ease concerns about broader market weakness. A Coindesk report stated that Bitcoin could test the $60,000-$65,000 range if declines continue.
The risk-off move was driven by a combination of profit-taking, thin liquidity, and caution ahead of several macroeconomic triggers this month.
Investors are also watching developments in the U.S., where President Donald Trump is expected to decide on a successor to central bank chair Jerome Powell.
Shares of Strategy Inc dropped 3.3% on Monday after the company slashed its full-year guidance, warning that the deepening sell-off in Bitcoin and continued volatility across crypto markets had severely weakened its earnings outlook.
Other crypto-related stocks also dropped on Monday. Coinbase declined around 5%, while Robinhood slid more than 4%.
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