December hasn’t been kind to crypto so far. Bitcoin slid sharply on Monday, dropping about 5% and briefly dipping below $87,000 during early Asian hours. Ethereum took an even harder hit, falling more than 6% under $2,900, while Solana sank over 7%. The entire market is flashing red right now.
Bitcoin already had a rough November, losing nearly 17%. It tried to bounce back last week after climbing above $90,000, but that recovery didn’t last. Now traders are nervous again, expecting the slide could get even worse.
Sean McNulty from FalconX said the biggest worry is the weak inflows into Bitcoin ETFs and the fact that dip buyers aren’t showing up anymore. He’s watching $80,000 as the next major support level if selling continues.
Making things worse, MicroStrategy’s CEO Phong Le said on Friday they might sell Bitcoin if their mNAV ratio goes negative. That spooked people even though he called it a last resort. The company’s mNAV has already dropped to 1.19 from much higher levels.
S&P Global also downgraded USDT’s stability rating last week to its lowest level, warning that falling Bitcoin prices could leave the stablecoin undercollateralized. Everyone’s watching this week’s US economic data closely to see what the Fed might do with interest rates.
Conclusion
Bitcoin’s sharp December decline reflects mounting concerns over weakening ETF demand, potential institutional selling pressure, and broader macroeconomic uncertainty as traders watch critical support levels nervously.
Also Read: Ethereum Hits a Historic Trendline
