Ines Ferré · Senior Business Reporter Updated Tue, December 2, 2025 at 12:38 AM GMT+8 3 min read In this article: - StockStory Top Pick HOOD -5.46%
- BTC-USD -7.94% STRC -0.67% STRD -1.14% STRF -2.46%
Bitcoin (BTC-USD) tumbled more than 8% on Monday alongside crypto-related stocks, casting doubt on a year-end rally despite growing prospects of a Federal Reserve interest rate cut.
The world's largest cryptocurrency fell from around $91,000 on Friday to $84,000 on Monday over concerns that Japan could raise interest rates, sparking fears that investors who borrowed Japanese yen to buy assets like US stocks and bitcoin might then rush to reverse those trades.
The last time such an unwind happened, in August 2024, bitcoin plunged from over $66,000 to around $54,000 in just a few days, an 18% drop, Nic Puckrin, investment analyst and co-founder of the Coin Bureau, noted.
"Now that history is repeating itself, it’s wise to prepare for more volatility," Puckrin said, highlighting how the sharp drop last year was followed by a recovery and new highs.
Read more: What is bitcoin, and how does it work?
"Beyond Japan, the macro backdrop remains favorable for risk assets," he said, noting the growing probability that the Federal Reserve will lower rates in December. "If you zoom out, there are still reasons to be optimistic amid all the doom and gloom."
CCC - CoinMarketCap • USD (BTC-USD) Follow View Quote Details 84,541.59 -7,296.41 (-7.94%) As of 4:56:00 PM UTC. Market Open. Advanced ChartStill, bitcoin exchange-traded funds (ETFs) posted their second-worst month in November, with $3.5 billion in outflows. The token is now down more than 30% from its October all-time high above $126,000.
"While conditions can shift quickly, a sustained rally still appears unlikely in the near term, especially before year-end. But 2026 may present a very different setup," said a 10X Research client note on Monday.
Bernstein analysts noted they are "still looking for clear signs for bitcoin to bottom out."
The token's "price action suggests weak market sentiment, which has impacted digital asset equities," analyst Gautam Chhugani said in a note on Monday morning.
Over the past 30 days, trading platform Coinbase (COIN) is down roughly 20%, stablecoin issuer Circle (CRCL) is down 38%, and Robinhood (HOOD) is down 16%. Bitcoin juggernaut Strategy (MSTR) has declined roughly 40% over the past month.
Concerns that lower token prices could prompt Strategy to sell some of its bitcoin to cover dividend and interest payments on debt have weighed on the stock.
On Monday, the company announced that it had established a US dollar reserve of $1.44 billion to support the "payment of dividends on its preferred stock and interest on its outstanding indebtedness."
Strategy added 130 tokens to its bitcoin holdings last week, bringing its total up to 650,000.
Story Continues
Michael Saylor, executive chairman and co-founder of Strategy, speaks during the "Bitcoin Treasuries Unconference" cryptocurrency event, in New York City, New York, U.S., September 17, 2025. REUTERS/Joy Malone/File Photo · Reuters / Reuters Even prior to Strategy's announcement, Bernstein and Benchmark strategists called the concerns over Strategy's future overstated and unrealistic.
"In simple terms, the company would be unable to fully cover its ~$8.2bn of convertible debt outstanding if bitcoin’s price were to fall below $12,700 and stay there," wrote Benchmark's Mark Palmer on Monday morning.
"That would require a decline of ~86% from current levels. While drawdowns of 80%+ have occurred multiple times during bitcoin’s 17-year history, we believe multiple macro shocks would have to happen simultaneously to drive such a reversal at this point, especially as speculative retail investors have been replaced by institutional entities as the marginal buyers of the cryptocurrency," he added.
Strategy stock fell to a 52-week low on Monday as the largest public holder of bitcoin said that yearly net income could range from a loss of $5.5 billion to a profit of $6.3 billion.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
Click here for the latest cryptocurrency news, prices, updates, and more
Read the latest financial and business news from Yahoo Finance
Terms and Privacy Policy Privacy Dashboard More Info
