Bitcoin (COIN:BTCUSD) posted a slight recovery on Tuesday after suffering a sharp drop in the previous session that dragged the world’s largest cryptocurrency below $84,000. The decline came as renewed risk aversion hit digital assets at the start of December, extending the volatility seen throughout late November.
The abrupt pullback surprised many traders, arriving just after Bitcoin bounced from levels near $80,000 late last week. By 01:58 ET (06:58 GMT), Bitcoin was up 0.6% at $87,087.6, having fallen more than 7% on Monday.
Bitcoin struggles to stabilize after December drop
Monday’s selloff continued the broader downtrend that dominated November—a month in which Bitcoin logged its steepest decline in more than four years and spot Bitcoin ETFs saw significant outflows.
Market sentiment remained fragile on Tuesday, with ongoing concerns about whether institutional appetite for crypto is weakening. Data pointed to a surge in whale transfers to exchanges and algorithmic-driven selling, both of which accelerated the decline.
Even with Tuesday’s modest rebound, the move did little to calm worries about deeper losses. According to a CoinDesk report, Bitcoin could slide toward the $60,000–$65,000 range if selling pressure intensifies.
The downturn has been fueled by a mix of profit-taking, thin liquidity and caution ahead of several key macro events this month.
Expectations for a Federal Reserve rate cut next week have climbed to nearly 90%, lifting hopes that financial conditions may ease soon. However, uncertainty surrounding the extent and pace of future easing continues to stir volatility across the crypto market.
Traders are also monitoring developments in Washington as President Donald Trump prepares to select a potential successor to Fed Chair Jerome Powell.
Strategy Inc cuts outlook as Bitcoin slump deepens
Shares of Strategy Inc (NASDAQ:MSTR) tumbled Monday after the company cut its full-year guidance, citing the worsening Bitcoin downturn and ongoing crypto market volatility as major drags on earnings.
Other crypto-related names also moved sharply lower:
- Coinbase (NASDAQ:COIN) dropped around 5%
- Robinhood (NASDAQ:HOOD) fell more than 4%
Altcoins trade mixed amid caution
Trading in alternative cryptocurrencies remained subdued, with most major tokens stuck in narrow ranges.
- Ethereum slipped 0.3% to $2,814.92
- XRP declined 1.1% to $2.02
- Solana posted a mild gain
- Cardano rose 2%
- Polygon slid 3.5%
Among meme tokens, both Dogecoin and $TRUMP edged 0.6% lower.
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