Crypto markets continue to fall as Bitcoin slips below $87,000

The cryptocurrency market extended its month-long decline on Thursday, mirroring a pullback in equities that gave up earlier gains.

Bitcoin, the market’s benchmark asset, fell more than 4% and slipped below $87,000 for the first time since April as buying interest continued to dry up and the early-year momentum faded. The downturn follows weeks of unwinding by fast-moving traders and the lingering effects of October’s record surge, which has left the market more exposed to selling pressure and sharp volatility.

By 5 p.m. in New York, Bitcoin was trading under $87,200.

Equities had initially rallied on renewed AI optimism after strong results from Nvidia Corp., but those gains later disappeared. Mounting concerns over stretched AI valuations and uncertainty surrounding a possible Federal Reserve rate cut in December have fueled volatility across Wall Street. Meanwhile, crypto remains stuck in its own cycle of leverage reduction and cooling retail participation — a divergence from traditional markets that has widened since early October.

Bitcoin’s latest drop is also tied to October’s severe liquidation event, when more than $19 billion in leveraged positions were wiped out in a single session. That shock disrupted market momentum and thinned liquidity across major exchanges. With order books never fully recovering, prices have become highly sensitive to even modest flows — a vulnerability that continues to amplify each downturn.

Broader economic uncertainty has added another layer of pressure to both crypto and stocks.