Bitcoin and cryptocurrency-linked firms deepened a nearly two-month decline on Monday, mirroring a wider sell-off in tech stocks that many analysts view as overpriced.
Bitcoin dropped 5.6%—after tumbling nearly 12% earlier—ending the day just above $85,000. The world’s most heavily traded cryptocurrency has fallen about 33% since hitting a record high of $126,210.50 on Oct. 6, according to Coinbase. Its earlier surge from April had tracked the stock market and benefited from a shift toward more crypto-friendly sentiment in Washington.
Companies tied to digital asset trading or that rely heavily on bitcoin holdings were hit hard in Monday’s decline. Coinbase Global fell 4.8%, Robinhood slid 4.1%, and bitcoin miner Riot Platforms lost 4%.
Strategy, the largest “bitcoin treasury” firm that raises capital solely to buy bitcoin, dropped 3.3%. The company holds 649,870 bitcoins—worth about $55.7 billion as of 4 p.m. ET Monday. Strategy now predicts bitcoin will finish the year between $85,000 and $110,000, revising down its Oct. 30 target of $150,000.
American Bitcoin, a company partly owned by Eric Trump and Donald Trump Jr., plunged 15.6% and has shed nearly 47% of its value since Sept. 30.
Other ventures linked to Donald Trump have also slid. The World Liberty Financial token, $WLFI, has fallen to roughly $4.14 billion in market value from more than $6 billion in mid-September, per coinmarketcap.com. Meanwhile, the Trump-themed meme coin, $TRUMP, trades at $5.70—far below its $45 price in the run-up to Trump’s inauguration.
Spot bitcoin ETFs, which allow investors to gain bitcoin exposure without holding the asset directly, saw record outflows in November. Morningstar Direct reports investors withdrew $3.6 billion from these funds—the biggest monthly drop since they debuted in January 2024.
Bitcoin futures have slumped nearly 24% over the past month, while gold futures are up about 7%.
Analysts cite multiple forces behind the crypto slump, including a broader “risk-off” tone pushing investors toward safer assets like gold and bonds. Deutsche Bank noted that institutional selling, profit-taking by long-term holders, and a more hawkish Federal Reserve have added to the pressure. Uncertainty due to slow-moving crypto regulation has also weighed on sentiment.
“While volatility is expected, the current conditions show that Bitcoin’s role in diversified portfolios is being tested—and it remains unclear whether this is a brief pullback or the beginning of a longer downturn,” Deutsche Bank analysts wrote.
Regulatory developments have been mixed. The industry gained some momentum in July when Trump signed a law establishing basic rules and consumer protections for stablecoins. But a broader bill that would define the crypto market’s structure is stalled in the Senate, despite being a key priority for an industry that heavily backed Trump and his allies.