FX.co ★ Bitcoin Slides Back Toward April Lows

Bitcoin experienced a decline of over 4%, settling at approximately $86,000, which nudged it closer to its lowest point since April. This drop was attributed to a renewed selloff in the market. The cryptocurrency sector has been in a state of turbulence, experiencing weeks of relentless selling pressure that originated in early October. This downturn followed the liquidation of about $19 billion in leveraged positions, occurring just days after Bitcoin reached a record high of $126,251. The most recent fall in value coincided with remarks from Phong Le, CEO of Strategy Inc., who indicated the possibility of selling some Bitcoin to meet dividend requirements. In addition, market anxieties were further fueled by an alert from Yearn’s X regarding an issue within the yETH liquidity pool. Despite Bitcoin's 16.7% depreciation in November, it managed a partial recovery last week. This rebound was buoyed by anticipations of a more aggressive rate-cutting cycle from the U.S. Federal Reserve. The market now assigns an approximate 85% probability to a 25 basis point cut in December, a significant increase from just 30% a week prior, with an expectation for three more cuts by the close of 2026.