Bitcoin fell below $86,000 for the first time in two weeks as the world's largest cryptocurrency extended its decline into bear market territory, reflecting weakening investor sentiment.

Analysts noted that Bitcoin is approaching the lower end of its recent trading range, with any price rebounds met by selling pressure from investors who bought near its early October record highs. On Monday, Bitcoin dropped as much as 3.3% to $85,578, marking a roughly 30% decline from its all-time high above $126,000.

Bohan Jiang, a senior derivatives trader at FalconX, commented, "Bitcoin remains highly volatile within the $85,000 to $94,000 range, with the broader crypto market suffering from low interest and subdued trading volumes."

In recent weeks, Bitcoin has moved in tandem with other risk assets on the downside but failed to follow their rebounds, breaking its usual positive correlation. Analysts suggest the latest slump highlights market stress amid weak liquidity and declining risk appetite, with even the Federal Reserve's recent rate cut failing to revive momentum in digital assets.