Bitcoin plunges to below US$88,000 in risk-off start to December

[SINGAPORE] Cryptocurrencies fell sharply on Monday (Dec 1), bringing fresh momentum to a wide-ranging sell-off that appeared to have settled.

Bitcoin slid as much as 4.3 per cent to below US$88,000 in early Asia trading, while Ether dropped 6 per cent to below US$2,900, according to data compiled by Bloomberg.

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

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

“It’s a risk-off start to December,” said Sean McNulty, Apac derivatives trading lead at FalconX. “The biggest concern is the meagre inflows into Bitcoin exchange-traded funds and the absence of dip buyers. We expect the structural headwinds to continue this month. We are watching US$80,000 on Bitcoin as the next key support level.”

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.

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US President Donald Trump on Sunday said that he had decided on his pick for the next Fed chair, after making clear he expects his nominee to deliver interest-rate cuts.

A gauge of Asian equities fluctuated in early trading after capping its best weekly advance in about two months, while S&P 500 futures edged lower. BLOOMBERG