Bitcoin falls below $85,000 amid a broader tech sell-off, heavy ETF withdrawals, and a shift toward safer assets, raising questions about the cryptocurrency’s market resilience.
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| Bitcoin’s sharp decline, coupled with losses for crypto-linked companies and heavy ETF withdrawals, reflects growing investor risk aversion and regulatory uncertainty. Image: CH |
Fintech Desk — December 2, 2025:
Bitcoin tumbled below $85,000 on Monday as the cryptocurrency market endured continued volatility, mirroring a broader sell-off in overheated tech stocks. The digital asset fell 5.6% for the day, after earlier plunging nearly 12%, marking a decline of roughly one-third from its October 6 peak of $126,210.50. Bitcoin’s spring and summer rally, which closely tracked stock market performance and benefited from positive sentiment toward digital assets in Washington, now appears under pressure as investors reassess risk.
Companies closely tied to Bitcoin holdings or crypto trading felt the impact sharply. Coinbase Global dropped 4.8%, Robinhood fell 4.1%, and mining firm Riot Platforms slid 4%. Strategy, a publicly traded company focused solely on acquiring Bitcoin, saw its stock decline 3.3% as it lowered its year-end Bitcoin forecast to $85,000–$110,000, down from the $150,000 target set at the end of October. Strategy currently holds 649,870 bitcoins, valued at approximately $55.7 billion.
Crypto ventures associated with former President Donald Trump were hit particularly hard. American Bitcoin, partially owned by Eric Trump and Donald Trump Jr., fell 15.6% and has lost nearly 47% of its value since September 30. Other Trump-linked tokens, including the $WLFI and $TRUMP coins, also experienced steep declines, reflecting the broader market vulnerability to high-profile and politically themed digital assets.
Heavy withdrawals from spot Bitcoin ETFs have intensified the downturn. November saw $3.6 billion pulled from these funds—the largest monthly outflow since January 2024—highlighting investor caution and reduced appetite for direct exposure to Bitcoin. Bitcoin futures have dropped nearly 24% over the past month, while gold futures have gained around 7%, signaling a shift toward safer, traditional assets as risk-off sentiment takes hold. Analysts attribute the slump to institutional selling, profit-taking, a more hawkish Federal Reserve, and overall market caution.
Regulatory developments continue to influence sentiment. While legislation signed in July established baseline rules and consumer protections for stablecoins, a broader regulatory framework defining the cryptocurrency market remains stalled in the Senate. Deutsche Bank analysts note that uneven regulation, combined with market volatility, is testing Bitcoin’s role in diversified portfolios.
The recent market movements raise critical questions: Is Bitcoin experiencing a brief pullback, or is this the start of a prolonged downturn? For investors, the answer depends on the interplay of institutional activity, regulatory clarity, and global risk appetite. For now, the cryptocurrency sector faces a period of heightened scrutiny, testing both its resilience and its promise as a long-term asset class.