Bitcoin and cryptocurrency-related companies are experiencing a significant, prolonged sell-off, with Bitcoin dropping to just over $85,000, a 33% decline from its October record. Major players like Coinbase and Robinhood, alongside Trump-linked crypto ventures, have seen substantial losses amidst a market-wide risk-off sentiment, institutional selling, and regulatory uncertainty.
Bitcoin and companies tied to cryptocurrencies extended a nearly two-month decline on Monday, mirroring a broader sell-off in technology stocks. Bitcoin fell 5.6% to settle just above $85,000, marking a 33% drop from its record high of $126,210.50 on October 6. This downturn has also impacted major crypto-related firms: Coinbase Global fell 4.8%, online trading platform Robinhood Markets lost 4.1%, and Bitcoin mining company Riot Platforms dropped 4%. Strategy, the largest crypto treasury company, saw its stock fall 3.3% and significantly revised its year-end Bitcoin forecast downwards from $150,000 to between $85,000 and $110,000. Even Trump-related crypto ventures were not spared, with American Bitcoin falling 15.6%, the World Liberty Financial token's market value decreasing from over $6 billion to $4.14 billion, and the $TRUMP meme coin's price plummeting from $45 to $5.70. Investors pulled $3.6 billion from spot Bitcoin ETFs in November, the largest monthly outflow since their January 2024 launch, and Bitcoin futures are down nearly 24% in the past month, contrasting with a 7% rise in gold futures. Analysts attribute the sell-off to a broad risk-off sentiment, institutional selling, profit-taking by long-term holders, a more hawkish Federal Reserve, and stalled crypto regulation. While the crypto industry received a boost with Trump signing stablecoin regulations in July, a crucial bill for a new cryptocurrency market structure remains stalled in the Senate, adding to market uncertainty.
