Bitcoin has once again fallen below $90,000 as a sell-off continues after its worst monthly drop since 2021, driven by rising global risk aversion weighing on stock and digital asset markets. On Monday, BTC fell more than 5% and is close to an eight-month low recorded last month.
Reports show that over $18,000 has been wiped off Bitcoin’s price in November, the biggest dollar drop since May 2021. While December has generally been positive for Bitcoin, its increasingly strong correlation with the stock market makes price movements highly sensitive to changes in global risk sentiment.
Analysis from XTB suggests that BTC’s fall is now an early indicator that risk sentiment is weakening. The sharp decline in the VIX volatility index last week also has the potential to unsettle investors. This has indirectly increased concerns ahead of the annual close. Derivatives markets also reflect the dominance of bearish sentiment, with three-month BTC futures now carrying almost no premium.
Ethereum also came under pressure, falling nearly 6% after a 22% decline in November. Negative sentiment was reinforced by S&P downgrading Tether and CEO Strategy’s statement that companies could sell their bitcoin holdings if the mNAV ratio falls below 1. Shares of major crypto companies also fell 3–4% in pre-market trading. BTC is currently trading at $$85,921.46.
Underlying pressure from fundamentals and macro markets suggests Bitcoin remains vulnerable to further declines if global risk sentiment continues to deteriorate.
