Risk-Off Mood Pushes Bitcoin Under $86,000 in Early December Decline

After holding the range around $91,000 for the previous week, Bitcoin dropped roughly 6% in the last day to trade below the $86,000 level on 1 December amid a widespread market sell-off. The price of the coin was $85,778. Ethereum dropped 5.85% to $2,814 over the last day, while other significant altcoins like XRP, BNB, Solana, Cardano, Tron, Dogecoin, and Hyperliquid saw declines of over 10%.

According to CoinMarketCap, within the same time period, the worldwide cryptocurrency market capitalisation fell 4.82% to $2.94 trillion. After a weeks-long selloff that began in early October, when around $19 billion in leveraged positions were liquidated just days after Bitcoin reached an all-time high of $126,251, the cryptocurrency market is still erratic. In November, Bitcoin's value dropped 16.7%.

Market Experts’ Opinion on the Development

After holding the range around $91,000 for a few days, the price of Bitcoin fell sharply to $86,500, and the CoinDCX Research Team claims that the bears are back in play. This effect was also observed in the other altcoins. According to the CoinDCX Research Team, the cryptocurrency market cap has lost around $140 billion in the last few hours due to the current reversal.

Meanwhile, China's Central Bank warned that it will step up its enforcement on stablecoins and reiterated its crypto ban. In the past week, Bitcoin and Ethereum fell by almost 1%. During this time, the main altcoins—XRP, BNB, Solana, Tron, Dogecoin, Cardano, and Hyperliquid—saw declines of over 6%. According to WazirX Trading Desk, the price of Bitcoin is at a crucial macro intersection. First, there is a tailwind in liquidity as the dollar declines.

This enhances market conditions for a persistent bid, but it does not ensure upside. According to WazirX Trading Desk, governments are focusing on non-sovereign sources of value because their currencies' purchasing power is questionable. hunger. When there is price uncertainty, this atmosphere tends to encourage Bitcoin accumulation. The market is cautious but balanced overall, with price action indicating uncertainty and volume indicating interest.

Total Crypto Market Capitalisation Slipped 4.4% to $2.94 Trillion

With the asset losing more than 4.5% in the last day due to a widespread market sell-off, Bitcoin's decline below $87,000 has accelerated bearish momentum. As more than $300 million in leveraged longs were wiped out, panic-driven liquidations caused trading volumes to soar 38% as the whole cryptocurrency market capitalisation fell 4.4% to $2.94 trillion. Bitcoin's short-term prognosis has swung further downward due to the break below important technical support near $89,500; if selling continues, retests might reach $85,500 or perhaps $82,000.

However, structurally speaking, this seems less like a fundamental breakdown and more like a leverage flush-out. Bitcoin may stabilise and try to recover the $90,000–$92,000 range in the upcoming sessions after excess leverage clears. The typical Sunday recovery never materialised since the CME gap had already been filled and $400M in longs had been flushed. Pressure was also increased by macro data. The market's weakness was exacerbated by rising US continuing unemployment claims, which are currently at 1.96 million. This indicated a softer labour market and raised expectations of a more expansionary Fed posture.