Pain for crypto investors continued on Monday as bitcoin remained significantly down during afternoon trading in the U.S., amid rising investor concern about the macroeconomic landscape.
Just after U.S. stock trading ended, bitcoin had dropped 3% over the past 24 hours to $86,000. , ether and solana all decreased by over 5%. Most crypto-related stocks experienced deeper losses, with Circle (CRCL), Galaxy Digital (GLXY), and Strategy (MSTR) dropping more than 8%, and Coinbase (COIN) sliding 6.4% on Monday. Conversely, some stocks performed better amidst the turmoil, like Bullish (BLSH), which lost 2.5%, and eToro (ETOR), down 3.7%.
The downturn in crypto occurs as traditional markets experienced only slight declines, with the Nasdaq closing down 0.6% and the S&P 500 falling 0.15%. AI-related stocks, such as Broadcom and Oracle, continue to struggle following disappointing earnings reports from the previous week. This sentiment has adversely affected bitcoin mining companies, many of which have transitioned to AI infrastructure. Hut 8 (HUT), CleanSpark (CLSK), Cipher Mining (CIFR), and IREN (IREN) all faced significant percentage drops on Monday.
Analyzing the decline
Crypto trading firm Wintermute noted signs of fatigue among risk assets, indicating that both equities and digital tokens are “digesting macro uncertainty instead of entering a prolonged risk-off phase.”
While bitcoin had been trading between $88,000 and $92,000 for over two weeks, it has now dipped below $86,000, raising concerns about potential further declines. “In the absence of indications of forced selling or a sustained decline in liquidity, any downturns are likely to remain controlled rather than chaotic,” Jasper De Maere, desk strategist at Wintermute, mentioned in a Monday report.
A key factor impacting markets is last week’s Federal Reserve meeting, which announced a widely anticipated 25 basis point cut. However, forward guidance turned notably cautious, with the Fed projecting just one rate cut in all of 2026, a much slower pace than many investors had expected. Markets still anticipate around three cuts next year, resulting in a disparity between investor actions and central bank communications.
This gap between inflation data and policy expectations is generating a turbulent environment for risk assets, especially in light of the Bank of Japan’s anticipated rate hike this week and its plans to unwind over $500 billion in ETF holdings, which have raised concerns regarding global liquidity and the yen carry trade.
‘Targeted purchases’
Looking ahead, De Maere predicts continued choppy, range-bound trading until early 2026, with no clear trends arising until more clarity is achieved regarding growth, liquidity, and policy. He noted that macroeconomic concerns have overwhelmed markets for months, but there may be opportunities for bottom-up narratives to regain prominence soon, including advancements in U.S. crypto regulation.
He does not observe signs of forced selling within the crypto sector, suggesting that any price drops may remain orderly, barring unforeseen events. “Until then, anticipate wider price ranges, volatile price movements, and selective buying opportunities, rather than a straightforward trend,” he stated.
Analysts at Bitfinex share a similar view, arguing that bitcoin’s market structure has fundamentally shifted and that the well-known “four-year cycle” no longer significantly influences price movements.
“With annual BTC issuance now below 1%, the halving’s impact has diminished,” Bitfinex analysts indicated in a Monday report. “Price drops since 2024 have been significantly shallower, as structural inflows from ETFs, corporates, and sovereign-linked entities have absorbed multiple times the annual mined supply.”
They asserted that bitcoin is now shifting to a new phase: one characterized by long-term, patient capital and reduced volatility, resembling gold.
The analysts also highlighted a historical relationship between gold and bitcoin, noting that BTC typically lags behind gold rallies by 100–150 trading days. With gold experiencing a sharp increase in 2025, they suggested that bitcoin might be set to follow suit in the months ahead, following a phase of consolidation.
Paul Howard, senior director at trading firm Wincent, also forecasted a more favorable outlook for 2026, though he warned against expecting rapid gains in the near term.
“The regulatory shifts of 2025 combined with easing monetary policy create a solid foundation for the ongoing evolution of the crypto asset class,” Howard stated. “However, I don’t foresee BTC reaching new all-time highs before Easter.”
