Bitcoin under pressure: the Crypto market slips into bearish territory

The leading cryptocurrency breaks below the $86,000 mark and loses 30% from its all-time high. With weak liquidity and fading risk appetite, analysts warn that selling pressure could persist.

Bitcoin is once again shaking the markets. For the first time in two weeks, the world’s most famous cryptocurrency has fallen below the $86,000 threshold, marking a new phase of weakness that reinforces fears of a market firmly entering bearish territory. On Monday, prices dropped as much as 3.7%, touching a low of $85,171, before a brief rebound in Asia and a renewed slide to around $85,575 in Hong Kong.

The most striking figure, however, is the comparison with recent history: Bitcoin is now down about 30% from its all-time high of more than $126,000 reached in early October. According to analysts, every attempt at a price rebound has been met with selling from investors who bought near the peak, a clear sign of increasingly fragile sentiment.

In recent weeks, Bitcoin has fallen alongside other risk assets but has failed to participate in their rebounds, breaking its usual positive correlation with equities and broader markets. This behavior, analysts say, reflects an environment marked by weak liquidity and a declining appetite for risk, even after the Federal Reserve’s recent rate cut.

Unlike previous sell-offs, the current decline is not being driven by forced liquidations. As Chris Newhouse, director of research at decentralized finance firm Ergonia, explains, the pressure is coming mainly from spot and derivatives positioning. Liquidation data remain relatively contained, suggesting that overly leveraged positions have already been cleared out. This opens the door to a more “organic” form of selling—potentially less abrupt, but more persistent.

The negative mood has spread across the broader crypto sector. Ether, Dogecoin, and XRP each fell by around 5%, while crypto-related stocks also came under heavy pressure. Strategy dropped more than 9% at one point during the session, and Coinbase slid about 7%. According to Coinglass, roughly $520 million worth of bullish bets across all tokens were liquidated over the past 24 hours.

It is a clear signal: for Bitcoin and the crypto market as a whole, the path toward stabilization still appears long and uncertain.

Andrea Pelucchi