Bitcoin Slips Below $86,000, Drifting Toward Annual Lows

Bitcoin slid as much as 3.7% to $85,171 on Monday, before paring losses during early Asian trading on Tuesday. The cryptocurrency later eased again, trading around $85,575 shortly after midday in Hong Kong. It is now down roughly 30% from its record high above $126,000.

The token has declined alongside other risk assets in recent weeks but has failed to rebound when broader markets stabilized, breaking its typical positive correlation. The downturn underscores concerns among analysts that markets are being pressured by thin liquidity and waning risk appetite, despite last week’s interest-rate cut by the Federal Reserve.

The final full trading week of 2025 opened with volatility across stocks, bonds, and the dollar, as investors braced for a slate of key economic data that could influence expectations for the Fed’s future policy path.