Bitcoin Slides Below $86K as Crypto Markets React to Macro Uncertainty

Crypto markets extended losses on Monday, keeping pressure on bitcoin and major altcoins as investors grappled with growing macroeconomic uncertainty. Bitcoin fell nearly 3% over the past 24 hours, slipping below the key $86,000 level during U.S. afternoon trading. The decline marked a break from its recent two-week range between $88,000 and $92,000, raising questions about near-term price direction. Major altcoins followed suit, with ether, XRP and solana each dropping more than 5%, reflecting broad-based weakness across the digital asset market.

Crypto-related stocks experienced even sharper losses. Shares of Circle, Galaxy Digital and Strategy fell more than 8%, while Coinbase closed down over 6%. Bitcoin mining companies were among the hardest hit, with Hut 8, CleanSpark, Cipher Mining and IREN posting double-digit percentage declines. The sell-off came despite only modest weakness in traditional markets, where the Nasdaq slipped 0.6% and the S&P 500 fell 0.15%, suggesting crypto-specific sensitivity to risk sentiment.

Market participants point to macroeconomic factors as the main driver. Trading firm Wintermute described the move as fatigue across risk assets rather than a full-blown risk-off event. Analysts noted that last week’s Federal Reserve meeting, while delivering a widely expected rate cut, surprised investors with cautious forward guidance. The Fed now projects fewer cuts in 2026 than markets had priced in, creating a disconnect between policy expectations and investor positioning. Additional uncertainty stems from the Bank of Japan’s expected rate hike and plans to unwind hundreds of billions of dollars in ETF holdings, which have raised concerns about global liquidity.

Despite the pullback, analysts largely see the decline as orderly. Wintermute highlighted the lack of forced selling or liquidity stress, suggesting further downside may remain controlled. Bitfinex analysts echoed this view, arguing that bitcoin’s market structure has evolved. With annual BTC issuance now below 1% and sustained inflows from ETFs and institutional investors, drawdowns have become shallower and volatility lower, making bitcoin increasingly comparable to gold.

Looking ahead, experts expect choppy, range-bound trading and selective dip-buying rather than a strong trend. While near-term upside may be limited, many remain constructive on bitcoin’s longer-term outlook as regulatory clarity improves and monetary conditions gradually ease into 2026.