Bitcoin dropped below $86,000 for the first time in two weeks, with investor sentiment weakening as the largest cryptocurrency slips deeper into bear market territory.
Bitcoin has been drifting toward the lower bound of its recent trading range with any bounce in price being met by selling from investors who purchased the original cryptocurrency near the all-time high reached in early October, analysts said.
Bitcoin fell as much as 3.7% to $85,171 on Monday. It regained some ground in Asia Tuesday morning before retreating to $85,575 just after noon in Hong Kong. It is down around 30% from its record high of more than $126,000.
Bitcoin has continued to fall with other risk assets in recent weeks but hasn’t rebounded when they have, breaking its usual upside correlation. The slide highlights what analysts see as a market squeezed by weak liquidity and fading risk appetite even after the Federal Reserve’s rate cut last week.
