Bitcoin is facing a steep downturn as December begins, succumbing to a wave of global market turbulence. On December 1, Bitcoin slid roughly 6% and at one point traded around $85,500–$86,000 — marking one of its sharpest single-day drops in recent months. This decline comes after a punishing November, itself the worst month for the asset since mid-2021 in dollar terms.
The current selloff has been driven by a combination of macroeconomic jitters and waning investor appetite for risk. A shift in global sentiment — driven in part by rising government bond yields after signals of potential rate increases from entities such as the Bank of Japan (BoJ) — triggered a broader retreat from speculative assets, including cryptocurrencies. At the same time, liquidity across crypto markets has weakened, contributing to heavier losses.
The fallout has had ripple effects beyond just price charts. For example, MicroStrategy — one of the largest corporate holders of Bitcoin — announced a sharp revision down of its 2025 earnings forecast, in response to the prolonged slump in Bitcoin’s value. That announcement deepened investor unease, reinforcing concerns about how corporate exposure to Bitcoin could exacerbate downside risk in a bear market.
Meanwhile, technical factors and market structure appear to amplify the downward pressure. According to data compiled from trading platforms, nearly US$1 billion in leveraged crypto positions were liquidated during the most recent selloff alone, highlighting the fragility of highly leveraged trades under stress. Analysts suggest that diminished demand, reduced ETF inflows, and persistent risk-off sentiment could continue to weigh on Bitcoin — at least until broader macroeconomic conditions stabilize.
Despite this sharp correction, some market watchers frame the slump as part of a broader — though painful — rebalancing process rather than a structural collapse of the crypto market. The selloff may flush out over-leveraged positions and create a more stable foundation for future adoption. Yet, given lingering uncertainties around interest rates, global economic conditions, and investor sentiment, Bitcoin’s path forward remains fraught with risks and dependent on developments in traditional financial markets.
