Bitcoin briefly dropped below $85,000 on Monday as the broader cryptocurrency market and related companies experienced significant losses. The world’s leading digital asset fell 5.6%, after earlier tumbling nearly 12%, extending its decline to roughly 33% since the record high of $126,210.50 on October 6. Analysts point to a combination of factors, including a wider tech stock sell-off, institutional profit-taking, and investor caution amid regulatory uncertainty.
Companies closely tied to Bitcoin faced steep declines. Coinbase Global fell 4.8%, Robinhood dropped 4.1%, and bitcoin miner Riot Platforms lost 4%. Strategy, a firm with the largest private bitcoin treasury holding nearly 650,000 coins valued at $55.7 billion, revised its year-end Bitcoin forecast down to a range of $85,000 to $110,000 from an October target of $150,000. Meanwhile, ventures linked to the Trump family, such as American Bitcoin, plunged 15.6% and have lost nearly half their value since late September. Other Trump-associated tokens, including $WLFI and the meme coin $TRUMP, have also retreated sharply from their mid-2025 highs.
Investor sentiment has been tested further by record outflows from spot Bitcoin ETFs, which allow exposure without direct asset ownership. November saw withdrawals totaling $3.6 billion, the largest monthly outflow since these products launched in January 2024. Bitcoin futures have dropped nearly 24% over the past month, in contrast with gold futures, which gained about 7%, reflecting a shift toward safer assets during a “risk-off” market phase.
Analysts highlight multiple pressures shaping the current downturn. Deutsche Bank cited institutional selling, profit-taking by long-term holders, and a more hawkish Federal Reserve as key drivers. Regulatory uncertainty also weighs heavily, with broader crypto market legislation stalled in the U.S. Senate despite earlier progress establishing basic rules for stablecoins. While the market experienced a surge earlier this year, fueled by positive sentiment in Washington and a closer correlation with stock performance, the current conditions are testing Bitcoin’s role in diversified portfolios.
Looking ahead, the near-term trajectory for Bitcoin remains uncertain. Volatility is expected, but whether Monday’s slump represents a temporary pullback or the start of a prolonged decline is unclear. Investors and market observers will be closely monitoring regulatory developments, institutional activity, and macroeconomic trends to gauge the future stability and growth potential of digital assets. The episode underscores the importance of risk management and the ongoing evolution of Bitcoin within the broader financial ecosystem.
