Crypto Stocks Sink as Bitcoin Plunges to Below $86,000 in Risk-Off Start to December

Tiger Newspress
Dec 01

Crypto stocks sank in morning trading on Monday. BitMine fell 8%; SharpLink Gaming, Strategy, and MARA Holdings fell 7%; Bitfarms fell 6%; Coinbase and Hut 8 fell 5%; Robinhood, Circle, Cipher Mining, CleanSpark, Riot Platforms, and IREN fell 4%.

Cryptocurrencies fell sharply on Monday, bringing fresh momentum to a wide-ranging selloff that appeared to have settled.

Bitcoin slid as much as 6% to below $86,000 in early Asia trading, while Ether dropped more than 7% to about $2,800, according to data compiled by Bloomberg. Most tokens followed a similar pattern, with Solana falling 7.8%.

The crypto market is on shaky ground after a weeks-long selloff that began when some $19 billion in levered bets were wiped out in early October, just days after Bitcoin set an all-time high of $126,251. The original cryptocurrency shed 16.7% of its value in November, but a let-up in the selling pressure saw it regain ground last week, rising to above $90,000.

After the latest bout of selling on Monday, traders are bracing for bigger moves lower.

Investors were on Monday digesting comments from Strategy Inc. Chief Executive Officer Phong Le, who said on a podcast on Friday that the Bitcoin-buyer could sell the token if its mNAV — a ratio of enterprise value to Bitcoin holdings — turned negative. “We can sell Bitcoin and we would sell Bitcoin if we needed to fund our dividend payments below 1x mNAV,” he said, adding that it would be a last resort. Strategy, which has a $56 billion Bitcoin stockpile, has seen its mNAV tumble to 1.19, according to its website.

Meanwhile, S&P Global Ratings last week downgraded an assessment of the stability of USDT, the world’s largest stablecoin, to its lowest rating, warning that a drop in Bitcoin’s value could leave the token undercollateralized. Further uncertainty came from the People’s Bank of China, which on Saturday issued a warning about the risks of virtual currencies including stablecoins, adding that government agencies should deepen coordination to crack down on illegal activities.

The week ahead is set to offer a crucial snapshot of US economic momentum as policymakers weigh the trajectory of interest rates heading into 2026. Data is likely to shape expectations for whether the Federal Reserve continues its rate-cutting cycle. US President Donald Trump on Sunday said he had decided on his pick for the next Fed chair, after making clear he expects his nominee to deliver interest-rate cuts.

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