Bitcoin experienced a significant drop below the $85,000 mark on December 1, 2025, marking a notable decline from its record high of $126,210 reached earlier this year. This recent fall brings Bitcoin’s value down by almost 33% since October 6th, a trend that raises concerns about a broader correction in the cryptocurrency market. [source:CoinMarketCap] The decline has been driven by a combination of global risk aversion and increased selling pressure from institutional investors. Crypto-linked companies, such as Coinbase (COIN), Robinhood (HOOD), and Riot Platforms (RIOT), have also experienced losses, mirroring the broader downturn in the sector. Investors have shifted towards safer assets like bonds and gold, leading to a significant drop of nearly 24% in Bitcoin futures over the last month. The recent volatility in the cryptocurrency market has also impacted the performance of spot bitcoin ETFs, which witnessed an outflow of $3.6 billion in November, the highest amount since their launch earlier this year. Analysts cite increased market risk aversion and a re-evaluation of high valuations in the technology sector as potential factors driving this decline. [Source: Deutsche Bank] The uncertainty surrounding cryptocurrency regulations, particularly with the ongoing debate over stablecoins legislation and a potential new regulatory framework being considered in the Senate, adds further complexity to the situation.