Crypto Selloff Causes Bitcoin Price to Crash Below $86,000

In Focus

• Bitcoin price dropped 6% in early trading on December 1, 2025
• Prices of other cryptocurrencies like Ether and Solana also dropped
• The drop in digital asset prices pushed the crypto market cap below $3 trillion

Crypto prices dropped sharply on December 1, 2025 following a fresh wave of selloff. According to Yahoo Finance, Bitcoin price crashed to below $86,000 following a 6% drop in early trading in Asia, before recovering slightly to trade at around $86,788 in London at 10.00am. Ether settled at about $2,800 after dipping 7%, while Solana experienced a 7.8% drop as per Bloomberg data.

Why Did Bitcoin Plunge Below $88,000?

Digital assets have been experiencing a selloff that started after the crypto market lost $19 billion in early October 2025. This happened days after the Bitcoin price hit a high of $126,251. Overall, the price of Bitcoin plunged 16.7% in the month of November 2025. Bitcoin, which is a public cryptocurrency, regained some of its value last week when it rose above the $90,000 market.

Wall Street had started warming up to cryptocurrencies early this year after plans by the Trump administration promised better regulation. But with today’s Bitcoin price drop, traders are bracing for a tougher month.

“It’s a risk-off start to December. The biggest concern is the meager inflows into Bitcoin exchange traded funds and absence of dip buyers. We expect the structural headwinds to continue this month. We are watching $80,000 on Bitcoin as the next key support level,” FalconX’s APAC derivatives trading lead Sean McNulty said as reported by Yahoo Finance.

Crypto Market Capitalization Drops Significantly

Bitcoin’s plunge below the $88000 mark caused the market capitalization of the global cryptocurrency market to drop below the $3 trillion mark. This drop represents about 32% drop from the close to $4.3 trillion market cap achieved in the month of October 2025.

The current Bitcoin price drop mirrors that of December 2024 when the world’s most valuable digital asset experienced a major price drop amid rising market volatility. Globally, the crypto selloff triggered micro shifts across markets, with equities in Asia fluctuating in early trading. In Japan, stocks slumped and the yen gained as the Bank of Japan hinted at a hike in rates in the month of December.

“At the macro level, rising Japanese government bond yields added further downside pressure, as investors assessed the potential acceleration of the yen carry-trade unwind, a dynamic that historically weighs on global risk assets, including crypto,” Chief Analyst at CoinEx Jeff Ko said as per Yahoo Finance.

Should Investors Sell their Bitcoins?

Last week, Strategy CEO Phong Le commented about selling Bitcoin in a podcast. According to him, Bitcoin holders may sell their token if the mNav turns negative.

“We can sell Bitcoin and we would sell Bitcoin if we needed to fund our dividend payments below 1x mNAV,” Le said as per Yahoo Finance.

Le however added that the sale would be a last resort. mNAV is the ratio of enterprise value to Bitcoin holdings. According to its website, Strategy holds Bitcoin worth $56 billion and its mNAV has dropped to 1.19.