The price of Bitcoin, the world's largest cryptocurrency, has fallen below the crucial $86,000 level for the first time in a fortnight, signaling a deepening bearish trend. According to a Bloomberg report, this decline is primarily driven by weakening investor sentiment, pushing the digital asset further into negative territory.
Market Plunge and Underperformance
As of 9:00 AM IST on 16 December 2025, Bitcoin was trading at $85,654.93, marking a significant drop of 4.07% over the previous 24 hours. Data from CoinMarketCap reveals that the market capitalization of Bitcoin also fell by 4.13% to $1.7 trillion, while trading volumes contracted by 8.76% to $43.69 billion.
An analysis highlights that Bitcoin's decline was steeper than the broader cryptocurrency market. This underperformance was triggered by substantial market liquidations exceeding $394 million, with a majority being long positions that hit stop-loss orders. The bearish pressure was further compounded by news that the United States Senate has delayed a key crypto market structure bill to 2026.
Expert Insight and Broader Market Impact
Commenting on the current volatility, Bohan Jiang, a senior derivatives trader at FalconX, told Bloomberg that Bitcoin is trapped in a "choppy range between $85,000-94,000". He attributed this movement to a "continued lack of interest and low volumes across the board".
Notably, Bitcoin's current valuation is approximately 30% lower than its all-time high of over $126,000, which was recorded in October 2025. The token's proximity to its 2025 low of around $74,400 (from April) continues to cause anxiety among market watchers.
The sell-off was not confined to Bitcoin. Other major cryptocurrencies also witnessed sharp declines:
- Ether (ETH)
- Dogecoin (DOGE)
- XRP (XRP)
Each of these tokens fell by roughly 5%. The downturn extended to related equities, with crypto company stocks like Strategy slumping over 9% and Coinbase Global Inc. declining around 7%.
Looking Ahead: A Low-Risk Cycle?
The current market phase appears to be characterized by low engagement and high uncertainty. The combination of massive liquidations, regulatory delays from a major economy like the US, and consistently low trading volumes suggests a cautious, risk-off environment for cryptocurrency investors. Market participants are now closely monitoring whether Bitcoin can find solid support above its yearly low or if the downward trajectory will persist.
