Bitcoin News Today: Bitcoin at $85K: Will Support Hold or Trigger Deeper Sell-Off?

Bitcoin's price fell below $84,000 in early December 2025, marking a pivotal week for the cryptocurrency as macroeconomic pressures and liquidity challenges intensified. The selloff, driven by a confluence of Asian market headwinds and Wall Street selling, pushed BTC/USD to $83,814 on Bitstamp, with daily losses exceeding 7%. Analysts highlighted the fragility of liquidity conditions, exacerbated by Japan's hawkish monetary policy signals and China's contracting non-manufacturing sector, which stoked fears of a global liquidity tightening. Meanwhile, the end of the U.S. Federal Reserve's quantitative tightening (QT) program, which officially concluded on December 1, introduced uncertainty about whether risk-asset inflows would materialize.

The sell-off was compounded by strategic selling pressures. QCP Capital noted that Strategy's potential disposal of Bitcoin treasury holdings, triggered by its CEO Phong Le's remarks, amplified panic in leveraged long positions. This, combined with a negative Coinbase Premium and rising open interest amid falling prices, underscored a bearish market sentiment. Traders closely watched the $85,200 support level, with some arguing that a break below this threshold would confirm a deeper bearish trend.

Technical analysis painted a mixed picture. While Bitcoin's 12-month chart suggested a potential bottoming process, the 200-day exponential moving average and SMA bands had shifted downward, signaling sustained bearish momentum. A "dead cat bounce" narrative gained traction, with analysts cautioning that a decisive breach of the $80,000 psychological barrier could expose further support levels at $69,000–$62,000. Despite this, some traders, including Michaël van de Poppe, argued that the current pullback presented a "massive opportunity" to accumulate Bitcoin below $90,000, citing the long-term resilience of the asset's 2013–2025 uptrend.

Upcoming U.S. economic data added to the volatility. The week's key events included Federal Reserve Chair Jerome Powell's speech on December 1, which coincided with the official end of QT, and the release of the ADP Employment Change, initial jobless claims, and PCE inflation data. These reports would shape market expectations for December rate cuts, currently priced at 86% on Kalshi. A weaker-than-expected labor market or disinflationary PCE reading could bolster Bitcoin's appeal as a risk-on asset, while stronger data might delay easing and deepen the selloff.

The interplay between macroeconomic signals and crypto-specific dynamics will likely define Bitcoin's near-term trajectory. While supportive factors like net spot ETF inflows and a 66% probability of pro-crypto Fed Chair Kevin Hassett's nomination exist, the asset remains vulnerable to liquidity shocks and geopolitical risks. As the week progressed, market participants braced for a critical test of whether Bitcoin could stabilize above $85,000 to avoid a prolonged bearish correction.