Bitcoin falls below $86k as major cryptocurrencies slide
- ByStartupStory | December 16, 2025
Bitcoin has tumbled below $86,000, dragging the broader cryptocurrency market into a sharp selloff amid renewed risk aversion and technical breakdowns.
The leading cryptocurrency dropped more than 5% in U.S. trading hours, breaching the psychologically important $86,000 level and hitting lows around $85,600. This extends a multi-week correction that has erased over 30% from Bitcoin’s early-October peak above $126,000, raising fears of a deeper “crypto winter” phase.
Ether followed suit, slipping under $3,000 with a 6-7% decline, while altcoins like Solana, XRP, Cardano, and Dogecoin shed between 6% and 10%. The total crypto market capitalization contracted by roughly $140 billion in hours, settling around $2.94 trillion as leveraged long positions faced widespread liquidations.
Triggers behind the plunge
Traders point to thin holiday liquidity amplifying moves, with Bitcoin breaking key support near $89,500 and triggering algorithmic selling. Macro headwinds include uncertainty over U.S. economic data and Federal Reserve policy, alongside China’s ongoing crypto restrictions dampening sentiment.
Technically, the breach of the 50-day moving average signals potential downside to $82,000 or lower if momentum persists. However, some view it as a healthy leverage flush rather than fundamental deterioration, given sustained institutional inflows via ETFs.
Outlook amid volatility
December has historically been bullish for Bitcoin, but current patterns suggest consolidation before any Santa Claus rally. Long-term bulls remain focused on adoption narratives, nation-state buying, and post-halving supply dynamics, though near-term pain tests retail conviction.
Investors should brace for continued swings as markets digest macro risks and await catalysts like regulatory clarity or ETF flow data.
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