According to analysts, Bitcoin has been moving towards the lower end of its recent trading range, and any price increase is being offset by sales from investors who bought the original cryptocurrency close to its all-time high in early October.
On Monday, Bitcoin dropped as much as 3.7% to $85,171, but on Tuesday morning, it gained some ground to trade little over $86,000 in Asia. From its all-time high of about $126,000, it has dropped by over 30%.
In recent weeks, Bitcoin has continued to decline along with other riskier assets, but it hasn’t recovered when it did, defying its typical upward trend. Even after the Federal Reserve lowered interest rates last week, the graphic shows what analysts believe to be a market pressured by poor liquidity and declining risk appetite.
As Wall Street prepared for important economic data that may influence the Fed’s rate forecast, equities, bonds, and the dollar began to fluctuate during the final full trading week of 2025.
On Monday, several cryptocurrencies saw further declines. Doge, XRP, and Ether all fell by about 5%, and shares of businesses involved in cryptocurrencies also declined. Coinbase Global Inc. fell almost 7%, and Strategy fell over 9% at one time.
In April, following the disruption of global financial markets by President Donald Trump’s original tariff plan, Bitcoin hit a 2025 low of about $74,400.
(Edited by : Juviraj Anchil)