Daily Market Update: Bitcoin Drops Below $86,000 as Stock Markets Retreat Ahead of Jobs Data

TLDR

• Bitcoin fell toward $85,800, down more than 4% over the past week, while ether dropped to around $2,930 and XRP posted weekly losses exceeding 5%
• The S&P 500 dropped 0.2% and Nasdaq tumbled 0.6% on Monday as tech stocks faced selling pressure from profit-taking and concerns about AI data center investments
• Crypto market capitalization slipped to $3.06 trillion, down more than 2% on the week, as the fear and greed index hit 16, its lowest level in nearly three weeks
• Global markets weakened ahead of Tuesday’s November jobs report, with Asian equities down 1.3% and U.S. equity futures softening
• The 10-year Treasury yield rebounded to 4.181%, staying above 4% and putting pressure on tech stocks valued on future profits

Bitcoin dropped toward $85,800 in Asian trading on Monday as both crypto and stock markets weakened ahead of key U.S. economic data. The world’s largest cryptocurrency fell more than 4% over the past week as selling pressure spread across digital assets.

Ether slipped to around $2,930 during the session. XRP, solana, and dogecoin all posted weekly losses exceeding 5%, showing a broad retreat across the crypto market rather than problems with specific tokens.

The crypto market capitalization edged down to about $3.06 trillion. The total market cap slipped 0.2% over 24 hours and more than 2% on the week.

Traditional stock markets mirrored the crypto weakness. The S&P 500 dropped 0.2% on Monday while the tech-heavy Nasdaq Composite tumbled 0.6%. The Dow Jones Industrial Average fell 0.1%.

Technology stocks led the decline as investors took profits after years of strong performance. Market participants expressed concerns about returns on massive data center investments that software companies are making for artificial intelligence capabilities. Worries also emerged that reduced data center spending could hurt demand for AI chips.

The 10-year Treasury yield rebounded from its intraday low of about 4.155% to 4.181%. The yield has stayed above 4% for several months as moderate economic growth keeps inflation above the Federal Reserve’s target.

Asian equities fell sharply during Monday’s session. The MSCI Asia Pacific Index dropped 1.3% as caution spread through global markets. U.S. equity futures softened ahead of Tuesday’s release of November jobs data.

The dollar hovered near two-month lows during trading. The yen strengthened to around 155 per dollar ahead of a widely expected Bank of Japan rate hike later this week.

Market Sentiment Turns Fearful

The crypto fear and greed index dropped to 11, its lowest level in nearly three weeks. The reading reflects extreme caution among investors as the market enters what analysts describe as a consolidation phase.

Alex Kuptsikevich, chief market analyst at FxPro, noted the transition from an uptrend to horizontal support. He said in an email that selling pressure since late November has broken the short-term structure, leaving downside risks in play.

Bitcoin briefly slipped below $87,500 earlier in the week before recovering toward $90,000. The broader technical picture has deteriorated according to analysts. FxPro analysts say a return toward $81,000 now represents the baseline scenario, though range-bound consolidation remains possible if selling eases.

Jobs Report Takes Center Stage

Economists expect November jobs data to show 45,000 positions added. The report will be released Tuesday morning and could shape market direction for the next few months.

Morgan Stanley’s chief U.S. equity strategist Mike Wilson wrote that this week’s jobs data could prove more important for equities than last week’s Federal Reserve meeting. Markets want to see job growth that’s healthy but not so strong that it prevents the Fed from cutting rates.

Prediction markets reflect cautious sentiment about crypto prices. On Kalshi, the majority of users expect bitcoin to finish the year below $100,000. The probability of a move above that level sits at just 23%.

Binance Research estimates total crypto market capitalization has fallen about 15% over the past 30 days. December typically brings lower liquidity, which increases the risk of sharper price swings as traders adjust exposure before year-end.

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