Bitcoin price fell as much as 8% on Monday, dragging down crypto-related stocks and raising doubts about a potential year-end rally despite rising expectations of a Federal Reserve interest rate cut, as per a report. The BTC drop was attributed to concerns that Japan could raise interest rates, prompting fears of a reversal in yen-funded trades that have supported assets such as US stocks and bitcoin, reported Yahoo Finance.

BTC USD Price Drops 8%, Echoing August 2024 Crash

BTC’s decline from around $91,000 on Friday to as low as $84,000 on Monday echoed similar market behavior in August 2024, when Bitcoin plunged from above $66,000 to roughly $54,000 in a matter of days, an 18% drop, according to Coin Bureau co-founder Nic Puckrin.

Puckrin said, “Now that history is repeating itself, it’s wise to prepare for more volatility,” and pointed out how the sharp drop last year was followed by a recovery and new highs, as quoted by Yahoo Finance.

He also pointed out, “Beyond Japan, the macro backdrop remains favorable for risk assets,” adding that the growing probability that the Federal Reserve will lower rates in December, as quoted in the report. Puckrin said, “If you zoom out, there are still reasons to be optimistic amid all the doom and gloom.”

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Bitcoin Price Recovers to $87,000, But ETFs See $3.5 Billion in Outflows

Bitcoin price on Tuesday was trading at $87,505.84 as of 12:32 PM UTC, up 2%.

CoinSwitch Markets Desk told The Economic Times in an emailed statement that while BTC traded within the $84K–$88K range, buyers stepped in on dips. CoinSwitch Markets Desk said, “After briefly testing the $84K–$85K support zone, the market absorbed the move and shifted into consolidation. A late-session push lifted BTC back above $86K.”

Despite the rebound, bitcoin exchange-traded funds (ETFs) recorded their second-worst month in November, posting $3.5 billion in outflows. Bitcoin is now down more than 30% from its October all-time high above $126,000.

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10X Research Says Year-End Rally Unlikely for Bitcoin USD

A note from 10X Research said that, “While conditions can shift quickly, a sustained rally still appears unlikely in the near term, especially before year-end. But 2026 may present a very different setup,” as quoted by Yahoo Finance.

BTC USD Price Key Support and Resistance Levels

CoinSwitch Markets Desk told The Economic Times, “If the price holds above $85.5K, momentum could build toward $87.5K–$88K, the next resistance zone. A clean break above this level may open a move toward $89K–$90K,” adding, “Investors can follow macro drivers closely, especially shifting Fed expectations.”

Bernstein Analysts Note Weak Market Sentiment Across Crypto

Bernstein analysts said they are still looking for clear signs of a bitcoin bottom. Analyst Gautam Chhugani noted that the token’s “price action suggests weak market sentiment, which has impacted digital asset equities,” as quoted by Yahoo Finance.

Crypto Stocks Slide: Coinbase, Circle, Robinhood, and Strategy Decline

In the past 30 days, Coinbase (COIN) has dropped around 20%, Circle (CRCL) is down 38%, and Robinhood (HOOD) has fallen 16%. Strategy (MSTR), one of the largest public holders of bitcoin, has declined roughly 40% over the same period.

FAQs

Is the Federal Reserve affecting Bitcoin’s movement?

Yes. Rising expectations of a rate cut in December are seen as supportive for risk assets.

Is BTC recovering today?

BTC rebounded to around $87,505.84, up about 2% after the Monday dip.