Bitcoin Stabilizes After Selloff, But Sub-$80K Levels Remain Possible
Cryptocurrency markets steadied on Tuesday following Monday’s sharp selloff, though analysts warn caution remains high. Bitcoin (BTC$88,196.85) bounced above $87,000 in early U.S. trading, up roughly 3% from overnight lows. Ether (ETH$2,940.38) lagged with a 1.4% gain, while altcoins including BNB (BNB$845.97), XRP ($1.9106), and SUI ($1.4240) rose 3%–6%.
Crypto-related equities also recovered. MicroStrategy (MSTR) and Robinhood (HOOD) climbed 3%–4%, and Circle (CRCL), issuer of the $78 billion USDC stablecoin, jumped 9%. In a rare move, crypto outperformed U.S. equities, with the S&P 500 down 0.5% and Nasdaq off 0.3%.
Monday’s volatility followed U.S. employment data showing November’s unemployment rate rose to a four-year high of 4.6%, though the market still prices only a 24% chance of a January Fed rate cut.
Samer Hasn, senior analyst at XS.com, described bitcoin’s recent rebound from the $80,000 November low as a “corrective high” and said a new drop below $80,000 is likely. He noted $750 million in long liquidations over the past two days, including $250 million in bitcoin futures, leaving the market “fragile.”
David Hernandez of 21Shares added that BTC faces short-term selling pressure amid delayed monetary easing but remains attractive as a long-term store of value due to its finite supply.
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