Bitcoin Dips Below $87,000 Amid China Slowdown and Market-Wide Liquidations

Global cryptocurrency markets experienced a sharp selloff on Monday, with Bitcoin sliding below the $87,000 mark. In thin holiday trading, the world's largest cryptocurrency fell nearly 2% to around $86,751, its lowest level since early December. This move wiped roughly $40 billion off Bitcoin's market value, which now sits near $1.73 trillion.

The decline quickly triggered a cascade of liquidations. According to data from Coinglass, approximately $200 million in leveraged positions were liquidated within an hour, with around $197 million of that coming from long bets. As stop-losses were triggered and forced selling accelerated, the downside pressure intensified across the market.

The weakness was not isolated to Bitcoin. Major altcoins including Ethereum (ETH), Solana (SOL), and XRP all fell between 3% and 4%, reflecting a broader risk-off mood across digital asset markets. Traders pointed to a mix of factors behind the selloff, including caution ahead of key U.S. economic data releases and fading enthusiasm around expectations of crypto-friendly deregulation tied to former President Donald Trump.

The crypto market turbulence occurred against a backdrop of renewed macroeconomic concerns, particularly from China. Fresh economic data showed China's growth slowing more than expected in November. Industrial output grew 4.8% year-on-year, marking the slowest pace in about 15 months and missing economist forecasts of 5%. Consumer activity looked even weaker, with retail sales rising just 1.3%—a sharp drop from October's 2.9% and the softest reading since China scrapped its zero-COVID restrictions in late 2022.

Fixed-asset investment also contracted by 2.6% over the January-November period, reflecting ongoing stress in the property sector. This data underscores rising global economic uncertainty heading into year-end, with investors turning cautious across equities, crypto, and global growth outlooks.

By Tuesday morning, cryptocurrency markets showed tentative signs of stabilization. Bitcoin rebounded from its lows, trading around $89,611, though it remained below key resistance levels between $90,000 and $90,500. Ethereum also attempted a recovery, trading near $3,119 after dipping toward $3,000. Analysts noted that both assets would need to clear nearby resistance zones to sustain a broader recovery.