Bitcoin Falls Below $85,000 Amid Broader Market Sell-Off

Bitcoin's price declined sharply on December 1, 2025, briefly falling below $85,000 before settling at approximately $85,500. This represents a 6% drop for the day and a 33% decrease from its October peak of $126,210.50. The downturn aligns with a broader sell-off in technology stocks, reflecting increased investor caution.

Companies associated with cryptocurrencies also experienced declines. Coinbase Global's stock fell 4.8%, Robinhood Markets dropped 4.1%, and Riot Platforms decreased by 4%. Strategy Inc., which holds 649,870 bitcoins valued at about $55.7 billion, saw its stock decline by 3.3%. The company adjusted its year-end bitcoin forecast to a range of $85,000 to $110,000, down from a previous estimate of $150,000.

Investors withdrew $3.6 billion from spot bitcoin ETFs in November, marking the largest monthly outflow since these funds began trading in January 2024. Analysts attribute the sell-off to profit-taking, institutional selling, regulatory uncertainties, and a shift toward safer assets like bonds and gold.

The crypto industry is awaiting the passage of key legislation on market regulation, which remains stalled in the Senate, adding to the current market uncertainty.