Executive Summary
This report delineates the recent bearish trajectory of Bitcoin (BTC), the preeminent cryptocurrency by market capitalization, which has experienced a notable decline in value attributed to macroeconomic influences and cybersecurity vulnerabilities. The findings elucidate potential implications for market participants and the broader cryptocurrency ecosystem.
Market Overview
BTC Dips Below $86,000
In a pronounced bearish development, Bitcoin commenced December with a significant depreciation exceeding 5% within a 24-hour timeframe, subsequently trading above the $86,000 mark after dipping into the $85,000 range earlier in the day. This decline is symptomatic of broader market pressures affecting both Bitcoin and alternative cryptocurrencies.
The adverse trend has extended to altcoins, with Ethereum (ETH) trading below $2,800 while XRP struggles to maintain levels above $2.00. These movements are reflective of a lack of investor confidence and signify a potential reevaluation of asset valuations across the board.
Impact of Macroeconomic Factors
The selloff has been precipitated in part by comments from Kazuo Ueda, Governor of the Bank of Japan (BoJ), indicating that interest rate hikes may be necessitated should economic conditions evolve as anticipated. Such monetary policy adjustments could exacerbate borrowing costs and reduce the attractiveness of carry trades, creating additional headwinds for speculative assets like cryptocurrencies.
Moreover, an imminent hacking incident involving the Yearn Finance protocol has further intensified downward pressure on Bitcoin and the cryptocurrency market at large, culminating in an approximate loss of $140 billion from total market capitalization over a mere four hours. Concurrently, leveraged positions amounting to approximately $500 million were liquidated during this tumultuous phase.
JUST IN: $140,000,000,000 wiped out from the crypto market cap in the past 4 hours. pic.twitter.com/c32OHlyafS
— Watcher.Guru (@WatcherGuru) December 1, 2025
Technical Analysis
BTC Under Pressure: Chart Examination
The BTC/USD daily chart illustrates a pronounced bearish sentiment as Bitcoin has relinquished 5% of its value in recent hours. Currently hovering above $86,000, all timeframes—daily, weekly, and monthly—exhibit a bearish bias corroborated by technical indicators.
Relative Strength Index and Momentum Indicators
The Relative Strength Index (RSI), currently at 32, is trending towards oversold territory following a brief recovery period noted in the preceding week. Should the RSI remain below the critical threshold of 30, Bitcoin may be poised for further downward movements in the short term.
Concurrently, the Moving Average Convergence Divergence (MACD) has signaled a transition to a bearish momentum phase, with a sell signal generated mere hours ago. Should this trend persist, market bears are likely to target the immediate support level at $80,600. A failure to maintain this support may precipitate a decline towards the April 7 low of $74,508.
Potential Recovery Scenarios
Conversely, should bullish forces regain traction, Bitcoin could potentially reverse its current trajectory and ascend towards resistance levels around $90,000 within forthcoming hours or days. This scenario hinges on broader market sentiment and external economic indicators influencing investor behavior.
