LONDON: Bitcoin crashed below the psychologically important $90,000 level on Monday, extending its sharpest monthly decline since the 2021 crypto crash, as broader risk aversion swept global markets.
The world’s largest cryptocurrency plunged as much as 6.1% during the session, hitting an intraday low near $85,000 before recovering slightly. By 09:42 GMT, Bitcoin was trading down almost 5% at $86,754 – marking its largest single-day drop in over a month and hovering dangerously close to November’s eight-month low of $80,553.
Analysts at Jefferies led by Christopher Kumar pointed to a cocktail of crypto-negative factors weighing on sentiment, including Bitcoin’s rising correlation with equities and renewed macro risk aversion. U.S.-listed spot Bitcoin ETFs suffered record outflows in November, with LSEG data showing the worst monthly redemptions on record as investors fled risk assets.
The selloff mirrored sharp declines in global stock markets, underscoring Bitcoin’s evolution from “digital gold” to just another high-beta risk asset. Traders now eye the $80,000 support level, with a break of which could trigger another leg lower in the ongoing correction.