Published: Dec 01, 2025 at 14:16
Coinidol.com: The volatile tug-of-war in price action resumed on December 1st, with Bitcoin (BTC) price slipping over 4% in early trading, signaling a renewed “risk-off” mood as the market reacted to global economic uncertainty and poor data reads.
Macro-driven volatility
Bitcoin traded near $86,000 following the dip, losing the momentum it had gained just days prior when it briefly recaptured the $90,000 level. This volatility coincided with Asian stocks falling and US futures dropping, underscoring the high correlation between crypto and broader risk assets.
The immediate catalyst for the renewed selling was a Chinese factory activity report showing continued contraction in November, extending a streak of declines that signal a deepening economic slowdown in the region. Since China is a major global economic driver, this news stoked global risk aversion, pushing investors out of speculative assets.
Institutional concern
Analysts noted that the lack of consistent, strong inflows into Bitcoin Exchange-Traded Funds (ETFs) is exacerbating the downside. The market remains sensitive to external cues, confirming that while institutional infrastructure exists, institutional belief is heavily influenced by the macroeconomic outlook, particularly regarding the US Federal Reserve’s stance on interest rates.
Coinidol.com reported previously that following weeks of severe corrections that pushed Bitcoin as low as the $87,000 range, the cryptocurrency staged a crucial rebound on November 28, moving decisively back above the $90,000 level.
Now, the selling pressure on December 1 serves as a harsh reminder that, despite its potential as an inflation hedge, Bitcoin remains fundamentally driven by global liquidity and risk appetite in the short term.
Disclaimer. This article is for informational purposes only and should not be viewed as an endorsement by Coinidol.com. Coinidol.com is an independent Blockchain media outlet that delivers news, cryptocurrency analytics and reviews. The data provided is collected by the author and is not sponsored by any company or developer. They are not a recommendation to buy or sell cryptocurrency. Readers should do their research before investing in funds.