Bitcoin slid sharply on Monday, underscoring its role as Wall Street’s most sensitive risk-on asset. The cryptocurrency fell more than 7% in 24 hours, dropping below $85,000 and erasing last week’s brief recovery.
The sell-off followed renewed anxiety over the yen carry trade, which spilled into U.S. markets and triggered more than $1 billion in forced liquidations across crypto, according to Axios.
Bitcoin is the risk indicator on Wall Street https://t.co/L40T66hZh5
— Axios (@axios) December 2, 2025
Analysts say bitcoin continues to react first and fastest to negative market signals. Nic Puckrin of Coin Bureau said the coin is “one of the most susceptible” assets to risk-off catalysts.
Liquidity has thinned due to frequent margin-based liquidations, while demand from ETFs and crypto treasury firms has slowed, removing a key pillar of support.
Bitcoin is now down nearly 32% from its October record of $126,080. Traders are watching the $82,000 level, viewed as a major cost basis for ETF investors. A break below it could deepen bearish sentiment.
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