Bitcoin Drops 4.3% To Below $88K As Crypto Selloff Deepens
- ByStartupStory | December 1, 2025
Risk-Off Sentiment Reverses $90K Rebound Amid Macro Uncertainty And Whale Moves
Bitcoin has plunged 4.3% to below $88,000 in early December 2025, extending a broader crypto selloff that erased recent gains above $90,000 and deepened losses from October highs near $126,000. The sharp reversal reflects renewed risk-off sentiment triggered by macroeconomic shifts, institutional repositioning, and technical resistance, with the asset now testing critical support at $86,000–$88,000.
Institutional Activity Sparks Volatility
SpaceX transferred 1,163 BTC worth over $105 million to new wallets, fueling speculation on custodial changes or liquidations, while Tesla holds steady at 11,509 BTC ($1.05 billion). BlackRock’s Bitcoin ETF saw $3.2 billion in unrealized gains evaporate post-$90K breach, with spot ETFs logging $903 million outflows earlier in November despite recent $21 million inflows. Ethereum and altcoins like XRP mirror the downturn, though RSI stabilization hints at potential bounces.
Fed rate cut odds at 77.2% for December offer tailwinds, boosted by crypto-friendly economist Kevin Hassett’s Fed Chair candidacy, yet 50/200-day EMAs at $100,937/$105,515 cap upside.
Technical Setup Signals Correction Risks
Bitcoin faces resistance at $89,000–$93,000, where short-squeeze liquidity clusters. Breakdown below $86,000 eyes $80,000 psychological support. Open interest dropped sharply—the steepest 30-day decline since 2022—indicating deleveraging that often precedes bottoms.
Broader market cap sits at $1.76 trillion with $26.41 billion 24-hour volume, as weekly losses hit 5% and monthly corrections exceed 22%. Bonk, Kaspa, Sui lead gainers over 10%, while Zcash drops 12.5%.
Macro Backdrop And Outlook
U.S. producer inflation, retail sales, and PCE data loom ahead of the Fed’s December 10 meeting. Dovish outcomes could rotate capital into crypto, but structural downtrends persist amid regulatory scrutiny and stablecoin risks.
Traders eye $88K hold for rebound potential toward $93K, or $84,500 breach signaling deeper correction. Sweden’s Klarna plans a dollar-backed stablecoin for 2026, adding ecosystem developments amid volatility.
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