Cryptocurrency prices fell sharply on Monday, with Bitcoin sliding as much as 6% and Ether dropping more than 7%, adding momentum to a selloff that has gripped digital assets for weeks. According to data compiled by Bloomberg, Bitcoin fell below $86,000 in early Asia trading, while Ether dropped to around $2,800. Other tokens followed suit, with Solana losing 7.8% as the market showed renewed signs of fragility.
The declines follow a turbulent period for crypto markets that began in early October, when roughly $19 billion in leveraged bets were liquidated, shortly after Bitcoin reached an all-time high of $126,251. Bitcoin lost 16.7% of its value in November, though a brief rebound last week lifted prices back above $90,000. Traders are now bracing for further downward pressure, with key support for Bitcoin seen around $80,000.
Sean McNulty, APAC derivatives trading lead at FalconX, told Bloomberg, “It’s a risk-off start to December. The biggest concern is the meagre inflows into Bitcoin exchange traded funds and absence of dip buyers. We expect the structural headwinds to continue this month. We are watching $80,000 on Bitcoin as the next key support level.”
Investors were also digesting remarks from Strategy Inc. CEO Phong Le, who said in a podcast that the firm could sell Bitcoin if its mNAV—a measure of enterprise value relative to Bitcoin holdings—turned negative. “We can sell Bitcoin and we would sell Bitcoin if we needed to fund our dividend payments below 1x mNAV,” Le added, noting it would be a last resort. Strategy, which holds a $56 billion Bitcoin stockpile, has seen its mNAV fall to 1.19, according to its website.
Further pressure came from concerns over stablecoins and regulatory scrutiny. Last week, S&P Global Ratings downgraded the stability rating of USDT, the world’s largest stablecoin, to its lowest level, warning that a sharp drop in Bitcoin’s value could leave the token undercollateralized. Meanwhile, the People’s Bank of China issued a warning on Saturday about the risks of virtual currencies, including stablecoins, urging government agencies to strengthen coordination to crack down on illegal activities. Jeff Ko, chief analyst at CoinEx, said that “a series of bearish developments over the weekend,” including the USDT downgrade and the PBOC warning, had renewed selling pressure on cryptocurrencies.
Broader financial markets were mixed as investors prepared for a week of key U.S. economic data that could influence the Federal Reserve’s interest rate trajectory heading into 2026. U.S. President Donald Trump said on Sunday that he had selected his pick for the next Fed chair, emphasizing expectations for interest-rate cuts. Asian equities fluctuated in early trading after capping their best weekly advance in about two months, while S&P 500 futures edged lower. Japanese stocks fell, and the yen strengthened as Bank of Japan Governor Kazuo Ueda signaled the possibility of a rate hike this month.
Monday’s crypto selloff, coupled with stablecoin instability and regulatory warnings, highlights lingering vulnerability in digital asset markets. Traders are closely watching key support levels and upcoming economic signals, with Bloomberg reporting that sentiment remains cautious as structural headwinds continue.
