Key Moments
- Bitcoin traded 0.6% higher at $87,087.6 after dropping more than 7% below $84,000 in the prior session.
- November’s weakness extended into early December, with spot Bitcoin ETFs seeing sustained outflows and institutional appetite under pressure.
- Shares of Strategy Inc (NASDAQ:MSTR), Coinbase (NASDAQ:COIN), and Robinhood (NASDAQ:HOOD) declined as crypto volatility weighed on earnings expectations and sentiment.
Bitcoin Attempts Modest Rebound After Sharp Drop
Bitcoin was slightly higher on Tuesday following a steep decline in the previous session that briefly pushed the token under $84,000, as renewed risk aversion swept through digital asset markets at the beginning of December.
The latest move came after Bitcoin had bounced from levels near $80,000 late last week, catching many traders off guard as selling pressure suddenly re-emerged. By 01:58 ET (06:58 GMT), the world’s largest cryptocurrency was last up 0.6% at $87,087.6, recovering part of Monday’s loss after falling more than 7% to below $84,000.
$BTC Next Move? 📈$BTC slowly grinding higher here on the 5-minute chart, but struggling to break the $87k level. Will be interesting to see what direction it moves come market hours.
Key support: $86.3k
Resistance: EMA10 at $89k, but the key resistance is the downsloping… pic.twitter.com/GFgirBP2po— Remote Navigator 🧭 (@RemoteNavigator) December 2, 2025
Downtrend From November Carries Into December
Monday’s decline extended a broader downtrend that defined trading in November, a period in which Bitcoin logged its weakest monthly performance in more than four years. During that stretch, spot Bitcoin ETFs experienced substantial outflows, underscoring persistent caution among institutional players.
Market sentiment remained fragile, with worries about institutional participation continuing to hang over the space. Reports indicated that a rapid increase in whale inflows to major exchanges, combined with algorithmic selling, amplified the latest price slide.
While Bitcoin steadied somewhat on Tuesday, the move offered limited comfort to investors concerned about ongoing market softness. A Coindesk report noted that Bitcoin could potentially retest the $60,000-$65,000 area if the downturn persists.
Macro Caution, Liquidity, and Fed Outlook Drive Volatility
The recent risk-off tone has been fueled by profit-taking, thin trading conditions, and uncertainty ahead of several macroeconomic events this month. Expectations for a Federal Reserve interest rate cut at next week’s meeting have risen to nearly 90%, lifting hopes for looser financial conditions. However, investors remain unsure about the precise timing and magnitude of any subsequent policy easing, which is contributing to elevated volatility across crypto markets.
Market participants are also monitoring developments in Washington, where President Donald Trump is expected to decide on a successor to Fed Chair Jerome Powell, adding another layer of uncertainty for risk assets.
Crypto-Linked Equities Under Pressure
Equities tied to the digital asset sector moved lower on Monday alongside the selloff in cryptocurrencies.
Shares of Strategy Inc (NASDAQ:MSTR) declined sharply after the firm cut its full-year earnings guidance, citing the intensifying Bitcoin downturn and continued turbulence across crypto markets as significant headwinds to its profit outlook.
Other listed crypto-exposed companies also retreated. Coinbase (NASDAQ:COIN) slipped about 5%, while Robinhood (NASDAQ:HOOD) fell more than 4% as investors reassessed the earnings and trading-volume implications of ongoing volatility.
| Company / Asset | Exchange / Type | Latest Move | Additional Context |
|---|---|---|---|
| Bitcoin | Cryptocurrency | +0.6% to $87,087.6 | Rebounded after falling more than 7% to below $84,000 on Monday |
| Strategy Inc | NASDAQ:MSTR | Fell sharply | Cut full-year guidance amid Bitcoin slide and crypto volatility |
| Coinbase | NASDAQ:COIN | Down about 5% | Impacted by broader crypto market weakness |
| Robinhood | NASDAQ:HOOD | Down more than 4% | Declined alongside other crypto-linked names |
Altcoins Trade Mixed in Cautious Environment
Altcoins were mostly subdued on Monday, with price action constrained by a cautious tone across digital assets.
Ethereum, the second-largest cryptocurrency by market value, edged 0.3% lower to $2,814.92. XRP, the third-largest token, declined 1.1% to $2.02.
Performance among other major tokens was mixed. Solana ticked slightly higher, Cardano advanced 2%, while Polygon dropped 3.5%.
In the meme-token segment, both Dogecoin and $TRUMP slipped 0.6%, reflecting the broader risk-off mood.
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