Cryptocurrency markets weakened on Monday as investors pulled back from riskier assets, pushing bitcoin below the $86,000 level and sending ether and other major tokens sharply lower.
Bitcoin fell roughly 4% over the past 24 hours to trade near $85,600 late Monday evening, while ether dropped more than 6% to around $2,900. The sell-off extended across the market, with declines also seen in BNB, XRP, and Solana, reflecting broad-based pressure rather than asset-specific news.
Market participants pointed to a shift in global risk sentiment as the primary driver. U.S. equity markets opened lower, setting the tone for a pullback across risk assets during American trading hours. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all closed modestly in the red, reinforcing cautious positioning.
Analysts noted that the move appeared disconnected from any major crypto-specific catalyst. Instead, thinning liquidity as markets approach year-end amplified price swings, making digital assets more sensitive to relatively modest selling pressure.
The decline followed last week’s quarter-point interest rate cut by the U.S. Federal Reserve, a move that failed to spark sustained risk appetite. While rate cuts have historically supported speculative assets, investors appeared more focused on lingering macro uncertainty and upcoming U.S. inflation data, which has encouraged more defensive positioning.
As leverage unwound and liquidity dried up, selling momentum accelerated, turning incremental dips into a broader slide. This dynamic has dimmed hopes for a traditional year-end rally in bitcoin, which has struggled to reclaim key resistance levels since the Fed’s decision.
Separately, some market observers speculated that developments in China’s crypto mining sector may have added to near-term pressure. Reports circulating on social media suggested that a large number of mining rigs had recently gone offline in China’s Xinjiang region, potentially reducing the Bitcoin network’s hashrate in the short term.
While enforcement actions could temporarily affect mining activity, analysts cautioned against drawing direct conclusions about price impact. There has been no clear evidence of significant bitcoin selling linked to the shutdowns, and fundamentals tied to network security and long-term adoption remain intact.
