The cryptocurrency market deepened its month-long slide during Asian trading Friday, with bitcoin tumbling as much as 2.1% to below $86,000 for the first time since April amid evaporating momentum and risk-off sentiment.
Bitcoin traded at $85,350.75 at one point, down from recent highs, while ether dropped over 2% to $2,777.39, its lowest in four months. The broader sell-off mirrors weakness in tech stocks, fueled by concerns over elevated valuations and fading hopes for aggressive Federal Reserve easing.
U.S. spot bitcoin ETFs saw billions in outflows this month, exacerbating the decline. Whales following four-year cycle patterns are selling heavily, thinning liquidity.
Total crypto market cap has shed over $1 trillion recently. Volatility remains elevated as macro factors dominate. Fundstrat’s Sean Farrell calls current levels a “potential value zone” for buyers, with oversold signals flashing.
Analysts warn of further downside if panic intensifies, but a rebound could target prior supports. Institutional interest persists long-term despite short-term pain.