Bitcoin slid below 86,500 dollars on Sunday night as fresh macroeconomic worries and a high-profile DeFi hack pushed traders toward safer ground. By 11:40 p.m., the cryptocurrency was trading at 86,310 dollars after a 4.8 percent daily drop, according to price data.
The sell-off hit across the board. Ether fell 5.36 percent to 2,827 dollars, XRP dropped 6.39 percent to 2.05 dollars, and Solana slipped 6.41 percent to 126 dollars. The sharpest decline took place during a three-hour window on Sunday evening when bitcoin tumbled from roughly 91,300 dollars to near 87,000 dollars. In that same period, the total crypto market cap shed more than 144 billion dollars, a 4.5 percent fall.
Bitcoin had recently enjoyed a brief rebound above 90,000 dollars, helped by growing expectations that the U.S. Federal Reserve may cut interest rates in December. The CME Group’s FedWatch Tool now shows an 87.4 percent chance of a 25 basis point cut. Analysts, however, warn that hope alone is not enough to keep prices elevated.
Rachael Lucas, a crypto analyst at BTC Markets, said traders were reacting more to positioning than fundamentals. She noted that the market priced in a December cut months ago, during the September and October rally. Lucas added that persistent inflation concerns and talk of potential tariffs continue to cap risk appetite.
Those pressures have been amplified by 3.5 billion dollars in net outflows from U.S. bitcoin ETFs in November, along with a wave of liquidations from leveraged long positions. Lucas described the current environment as a classic deleveraging spiral and said bitcoin is behaving like a high beta risk asset. In her view, the market needs a genuine surge in liquidity to recover.
Sunday’s downturn was intensified by a hacking incident involving Yearn Finance. Attackers drained its yETH pool and sent 1,000 ETH to Tornado Cash. The event came shortly after South Korean exchange Upbit faced its own breach. Jeff Mei, COO of BTSE, said traders worry that panic-driven withdrawals across DeFi platforms could add more pressure to the market.
Lucas pointed to 87,000 dollars as a crucial support level. If that line holds, she believes bitcoin could reclaim some ground. If it breaks, she sees 80,400 dollars as the next target, with the possibility of a slide toward 75,000 dollars if liquidity rushes lower.
Looking ahead, Lucas said a confirmed rate cut from the Fed could spark a 10 to 15 percent rally, pushing bitcoin back into the 95,000 to 100,000 dollar range. A stronger dovish signal from Fed Chair Jerome Powell could lift it even higher, possibly toward 110,000 to 120,000 dollars. The bear case, she noted, is a “sell the news” reaction if Powell tempers expectations, which could send bitcoin back toward 80,000 dollars. She advised watching ETF flows for clues.
Crypto venture capital firms agree that clearer macro policy will be the key driver over the coming months. Boris Revsin of Tribe Capital said markets may be underestimating how dovish policy could become if a new Fed leader prioritizes liquidity.
That possibility gained traction after President Donald Trump revealed on Sunday that he has selected his nominee for the next Federal Reserve Chair but has not yet announced the name. Bloomberg previously reported that Kevin Hassett, head of the White House National Economic Council, is the leading candidate. Mei said the confirmation that a choice has been made could fuel renewed optimism for rate cuts and support a market rebound.
