Broad Crypto Sell-Off Intensifies with Bitcoin Dropping Back to $90K

Bitcoin extended its overnight slide on Friday, slipping back to $90,000 in early U.S. trading and erasing a large portion of the recovery that followed last Sunday’s sharp sell-off, which briefly sent the price down to $84,000. The retreat arrives ahead of the usual Sunday-evening volatility, hinting that the holiday period may bring earlier and more frequent market swings.

The latest pullback may lend weight to analyst expectations that bitcoin is more likely to consolidate into year-end rather than mount an immediate rebound. The weakness rippled across publicly traded crypto-linked stocks, with Strategy (MSTR), Galaxy Digital (GLXY), CleanSpark (CLSK), and American Bitcoin (ABTC) all falling 4%–7%.

Market-behavior data from Velo shows the past six months’ most negative trading window has consistently been the hour leading into the U.S. market open and the first hour afterward. Fridays, meanwhile, have been the most reliably bearish day of the week.

Inflation expectations offer a brief lift

A softer-than-expected read on consumer inflation briefly improved sentiment. The University of Michigan’s Consumer Sentiment report released at 10 a.m. ET showed the 1-Year Inflation Expectation dropping to 4.1% from 4.5%, while the 5-Year measure eased to 3.2% from 3.4%. Though the survey is anecdotal and often influenced by political leanings, the decline provided a welcome signal during a stretch of lighter economic data.

Bitcoin saw a modest bounce to around $91,000 following the release.

With markets fully pricing in a rate cut at next week’s final Federal Reserve meeting of the year, attention is shifting to early 2026. A continued easing in inflation could open the door for additional cuts in the first quarter—potentially offering renewed support for risk assets, including crypto.