Bitcoin plunges to below US$87,000 in risk-off start to December
Sign up now: Get ST's newsletters delivered to your inbox
Bitcoin slid as much as 5.1 per cent to below US$87,000 in morning Asia trading, while Ether dropped 6 per cent to below US$2,900.
PHOTO: BLOOMBERG
Follow topic:
SINGAPORE - Cryptocurrencies fell sharply on Dec 1, bringing fresh momentum to a wide-ranging sell-off that appeared to have settled.
Bitcoin slid as much as 5.1 per cent to below US$87,000 in morning Asia trading, while Ether dropped 6 per cent to below US$2,900, according to data compiled by Bloomberg. Most tokens followed a similar pattern, with Solana falling more than 7 per cent.
The crypto market is on shaky ground after a weeks-long rout that began when some US$19 billion (S$24.6 billion) in leveraged bets were wiped out in early October, just days after Bitcoin set an all-time high of US$126,251. A let-up in the selling pressure saw the original cryptocurrency regain ground last week, rising to above US$90,000.
After the latest bout of selling on Dec 1, traders are bracing themselves for bigger moves lower.
“It’s a risk-off start to December,” said Mr Sean McNulty, Asia-Pacific derivatives trading lead at FalconX. “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 US$80,000 on Bitcoin as the next key support level.”
Investors were on Dec 1 digesting comments from Strategy’s chief executive Phong Le, who said on a podcast on Nov 28 that the Bitcoin-buyer could sell the token if its mNAV – a ratio of enterprise value 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,” he said, adding that it would be a last resort.
Strategy, which has a US$56 billion Bitcoin stockpile, has seen its mNAV tumble to 1.19, according to its website.
Meanwhile, S&P Global Ratings last week downgraded an assessment of the stability of USDT, the world’s largest stablecoin, to its lowest rating, warning that a drop in Bitcoin’s value could leave the stablecoin under-collateralised.
The week ahead is set to offer a crucial snapshot of US economic momentum as policymakers weigh the trajectory of interest rates heading into 2026. Data is likely to shape expectations for whether the Federal Reserve continues its rate-cutting cycle.
US President Donald Trump on Nov 30 said he had decided on his pick for the next Fed chair, after making clear he expects his nominee to deliver interest rate cuts. BLOOMBERG
