Bitcoin’s value fell below $86,000 in Asian trading Monday morning, even as regional stock markets stabilized heading into the final month of 2025, buoyed by growing optimism that the United States is approaching another interest rate cut.
After the price of Bitcoin fluctuated around the $91,000 level at the end of November, its price continued to gradually decline, indicating weak momentum and lack of capitulation, but the situation changed after a strong wave of selling broke successive support levels and pushed prices towards the $86,900 area yesterday, amid a sharp increase in the volume of sales transactions, which led to a wave of forced liquidations and the activation of a large number of stop-loss limit orders.
Market Overview
- Bitcoin price: $86,053, down 5.4%
- Ethereum price: $2,819, down 6.1%
- Ripple Coin Price (Ripple-XRP): $2.04, down 7.5%
Total cryptocurrency market capitalization: $3.01 trillion, down 4.9%
Japanese bonds are vomiting in the face of renewed expectations of rate hikes: the yield on the 2-year JGB exceeds 1% for the first time since 2008, and the Nikkei is collapsing. And since Bitcoin always correlates with anything going down, we have a 4% decline in Bitcoin in Asian trading. pic.twitter.com/dL0Uc4bYD2
– zero cover (@zerohedge) December 1, 2025
Liquidation wave deepens following liquidation of speculative trades using leverage of over $600 million
Data from Coinglass shows that speculators suffered heavy losses over the past 24 hours, with the liquidation value of crypto trades reaching $608 million.
The largest share of losses came from the trading of bullish speculators, as their losses exceeded $535 million, while those of their bearish counterparts did not exceed $73 million. Bitcoin and Ethereum speculative trades have surpassed the wave of losses, with speculative trades on them worth around $185 million and $154 million, respectively, being liquidated.
For traders with high leverage multiples, the liquidation wave looked more like a speculative position reset heading into December, that is, less like a sudden and sharp drop.
For their part, stock markets appeared calmer, with the MSCI Asia-Pacific ex-Japan stock index seeing no significant change, as it is still up 23.5% year-to-date and heading for its strongest annual gains since 2017.
As for Japan’s Nikkei index, it fell about 1.3% in early trading, while Hong Kong’s Hang Seng index rose more than 1%, helping to offset declines in U.S. stock futures.
Additionally, rising metals inventories helped China’s stock market start the month on a slightly better note, even though the latest factory data showed activities continued to contract in November.
Eyes on Fed as markets await Powell’s December policy comments
Investors remained cautious about China’s real estate sector after China Vanke apparently failed to secure a short-term bank loan, raising credit concerns in the real estate sector.
While the general tone of global markets is set in Washington, investors are currently awaiting a series of important US data this week, which will include the manufacturing and services sectors, in addition to consumer confidence and the first readings of holiday spending from Black Friday (the end-of-year shopping season) and Cyber Monday.
Attention is also on the Federal Reserve, with traders awaiting statements from its Chairman, Jerome Powell, later today, hoping to receive guidance on the Monetary Policy Committee meeting in mid-December. The latest dovish comments from Fed officials have made another rate cut more likely, and futures markets are now pricing in an 87% chance that another rate cut will be expected this month.
The expected data could determine whether the frequency of interest rate cuts will extend into 2026.
The data expected this week comes in an unusual context. A longer government shutdown (43 days) earlier this year delayed the release of major data, forcing policymakers to operate on sometimes outdated data, leading markets to rely more on speeches from local Federal Reserve presidents and governors for guidance.
Recent statements from San Francisco Fed President Mary Daly and Governor Christopher Waller have reinforced expectations for continued monetary policy easing, while New York Fed President John Williams said he sees the possibility of further tapering imminent as business conditions improve.
For the Fed, the expected batch of data will help determine whether the rate-cutting cycle extends into 2026, as inflation continues to ease and consumer demand slows.
As for digital currency traders, the same data will determine whether the wave of liquidation of speculative Bitcoin trading on Monday was just a temporary shock, or the start of a real repricing after a sharp rally that continued throughout the year.
The post Asian Market Open: Bitcoin (BTC) Price Falls Below $86,000 and Stocks Find Support in Federal Reserve Expectations appeared first on Cryptonews Arabic.
