Bitcoin Slips Below $86K Amid Concerns About ‘Meager' Inflows

Core Insights - The cryptocurrency market is experiencing a significant selloff that began in October, with Bitcoin and Ether seeing substantial declines in early December [2][3]. Market Performance - Bitcoin fell by as much as 6% to under $86,000, while Ether slid more than 7% to approximately $2,800 [2]. - The market has lost around $19 billion since the selloff began, following Bitcoin's peak at $126,251 [2]. - Bitcoin lost 16.7% of its value in November but showed signs of recovery last week, climbing beyond $90,000 [3]. Investor Sentiment - Traders are cautious, anticipating further declines, with a focus on Bitcoin's support level at $80,000 [3]. - Concerns are raised regarding low inflows into Bitcoin exchange-traded funds and a lack of dip buyers [3]. Corporate Actions - Strategy CEO Phong Le indicated that the company could sell Bitcoin if its mNAV falls below 1x to fund dividend payments, highlighting a potential shift in corporate crypto holdings [4][5]. - Strategy has accumulated $56 billion in Bitcoin, with its mNAV currently at 1.19 [5]. Regulatory Developments - S&P Global Ratings downgraded its assessment of USDT, the largest stablecoin, from "constrained" to "weak," indicating concerns about its ability to maintain its U.S. dollar peg [6]. Retail Adoption - Retailers view cryptocurrency as a long-tail enhancement rather than a primary payment method, similar to the early days of PayPal or Klarna [6][7].