BY COMFORT OGBONNA
Bitcoin fell back under the $90,000 mark on Monday, extending a slide that follows its sharpest monthly decline since the crypto crash of 2021. Growing risk aversion in global markets pushed investors out of both equities and digital assets, intensifying the pressure on the world’s largest cryptocurrency.
At one point, bitcoin dropped as much as 6.1%. By 0942 GMT, it was trading nearly 5% lower at $86,754, putting it on track for its biggest single-day drop in a month and leaving it hovering dangerously close to last month’s eight-month low of $80,553. The November rout was particularly painful, wiping out more than $18,000 from bitcoin’s value — its steepest dollar decline since May 2021, when several major cryptocurrencies experienced dramatic collapses.
Despite bitcoin’s twelve-year trading history, analysts note that its seasonal patterns remain limited. Even so, historical averages show that since 2012, December has delivered an average gain of about 9.7%, making it the third-best performing month. October typically leads with an average rise of 16.6%, while September ranks as the weakest, with a historical loss of 3.5%. But this year, analysts say, the cryptocurrency’s strong correlation with stock markets is a far more influential factor.
XTB research director Kathleen Brooks emphasized this link, noting that bitcoin has increasingly become a barometer of broader risk appetite. “Bitcoin tends to be a leading indicator for overall risk sentiment right now, and its slide does not bode well for stocks at the start of this month,” she said. Brooks added that although no single catalyst drove Monday’s sell-off, last week’s sharp drop in market volatility — with the VIX falling below its 12-month average — may have unsettled investors facing an uncertain outlook heading into year-end.
Ether, the second-largest cryptocurrency by market value, also tumbled. It slipped 6% to $2,840 after shedding about 22% in November, its heaviest monthly decline since February’s 32% slide.
Jefferies strategist Mohit Kumar pointed out several developments that have weighed on sentiment. Last week, S&P Global downgraded its rating of Tether, the world’s most heavily used stablecoin, citing rising exposure to higher-risk assets and ongoing gaps in transparency. Tether pushed back strongly on the assessment, but the downgrade rattled confidence nonetheless.
Adding to the unease, Phong Le, CEO of Strategy — the largest corporate holder of bitcoin — suggested on the “What Bitcoin Did” podcast that the company may consider selling its holdings if its “mNAV” ratio, which compares its enterprise value to the value of its bitcoin reserves, falls below 1. Strategy’s website currently places that metric at approximately 1.19, but the comment raised concerns about potential institutional selling.
Shares of Strategy, Coinbase, and major mining companies including Riot Platforms and MARA Holdings were all down between 3% and 4% in premarket trading, reflecting broader pressure across the crypto ecosystem.
The market’s overall contraction has been striking. After peaking at around $4.3 trillion in total value, the crypto sector has now shed more than $1 trillion, according to CoinGecko data. Meanwhile, U.S. spot bitcoin exchange-traded funds saw record outflows of $3.43 billion in November. Despite this, the products still accumulated a net inflow of $21 billion so far this year, underscoring a turbulent but active trading landscape.
Investors now enter December weighing mixed historical trends, growing regulatory scrutiny, rising market volatility, and a deepening pullback in both crypto and equities. With risk sentiment shifting rapidly, bitcoin’s path in the short term remains highly uncertain.
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