Representation of bitcoin cryptocurrency in this illustration
Credit: Reuters Photo
Bengaluru: The largest cryptocurrency by market cap, Bitcoin, plunged to below $86,000 on Monday amid a broad market sell-off. Exchanges said the cryptocurrency might shed more in the coming weeks as the next FOMC (Federal Open Market Committee) meeting will be held on December 9, and US Fed Chair Jerome Powell will make the monetary policy announcement on December 10.
Bitcoin has lost over 5 per cent in the past 24 hours, and it was trading at $85,364.79 on Monday evening. “Total crypto market capitalisation slipped 4.4 per cent to $2.94 trillion, while trading volumes spiked 38 per cent, reflecting panic-driven liquidations as over $300 million in leveraged longs were wiped out,” Delta Exchange Research Analyst Riya Sehgal said.
Altcoins followed, with Ethereum, Solana, and XRP dropping between 5 per cent and 6 per cent, underscoring the risk-off sentiment sweeping across digital assets. The break below key technical support near $89,500 has shifted Bitcoin’s short-term outlook toward further downside, with potential retests of $85,500 or even $82,000 if selling persists.
“Still, structurally, this appears more like a leverage flush-out than a fundamental breakdown. Once excess leverage clears, Bitcoin could stabilise and attempt to reclaim the $90,000–$92,000 zone in the sessions ahead,” he added.
“Despite the pause in momentum, Bitcoin ETFs have posted their first week of net inflows since October, signaling a potential revival in institutional demand. Strengthening liquidity and improving market depth also support a constructive outlook. If sentiment stabilises, BTC could attempt its next leg higher. For now, $85,000 serves as key support, while $92,400 remains the immediate resistance,” Mudrex Lead Quant Analyst Akshat Siddhant said.
According to crypto exchange WazirX, Bitcoin’s price sits at a pivotal macro intersection. “First, a weakening dollar provides a liquidity tailwind. This doesn’t guarantee upside, but it improves market conditions for a sustained bid. Growing divergence among central banks reinforces Bitcoin’s status as a global macro alternative asset. Instead of trading purely on tech sentiment, BTC increasingly behaves like a cross-asset hedge against globally differing policies. That elevates its role in institutional portfolios during macro stress,” the crypto exchange said.