Bitcoin (BTC) Price: Cryptocurrency Rebounds to $87K After 7% Monday Selloff

TLDR

• Bitcoin traded 0.6% higher at $87,087 on Tuesday after falling more than 7% below $84,000 on Monday in a steep selloff
• The cryptocurrency suffered its worst monthly performance in over four years during November, with spot Bitcoin ETFs recording heavy outflows
• Fed Chair Jerome Powell declined to comment on monetary policy during a Stanford University speech due to the blackout period before next week’s FOMC meeting
• ISM Manufacturing PMI data showed the manufacturing sector contracted for the ninth consecutive month, with November’s reading at 48.2
• CME FedWatch Tool shows approximately 87% odds of a 25 basis point rate cut at the December 10 Federal Reserve meeting

Bitcoin recovered on Tuesday after experiencing one of its sharpest single-day drops in recent months. The world’s largest cryptocurrency traded at $87,087, up 0.6% from Monday’s lows.

The recovery came after Bitcoin fell more than 7% on Monday, briefly dropping below $84,000. The sudden decline caught many traders off guard, particularly since the cryptocurrency had just rebounded from around $80,000 late last week.

The Monday selloff extended a downtrend that dominated November trading. Bitcoin recorded its worst monthly performance in more than four years during November. Spot Bitcoin ETFs saw heavy outflows during the same period.

Reports indicated that whale inflows to major exchanges increased rapidly ahead of the decline. Algorithmic selling also contributed to the accelerated drop. Some analysts suggest Bitcoin could test the $60,000 to $65,000 range if the downward trend continues.

Manufacturing Data Points to Economic Slowdown

The ISM Manufacturing PMI data released Monday showed continued contraction in the manufacturing sector. The sector has now contracted for nine consecutive months.

November’s ISM Manufacturing PMI came in at 48.2, the lowest reading in four months. The figure fell below forecasts of 48.6. The data revealed declining orders and higher prices attributed to tariff impacts.

Fed Chair Jerome Powell spoke at Stanford University on Tuesday but did not address current economic conditions or monetary policy. Powell stated clearly at the beginning of his remarks that he would not discuss these topics.

The Fed Chair has been in a blackout period preceding next week’s FOMC meeting. Powell has not made public comments on monetary policy since his October press conference, where he stated that a December rate cut was uncertain.

Rate Cut Expectations Near 90%

Market expectations for a Federal Reserve rate cut at the December 10 meeting have risen substantially. The CME FedWatch Tool shows odds of a 25 basis point rate cut hovering near 87%.

Joe Saluzzi, head of Equity Market Structure at Themis Trading, told Reuters he sees no reason why the uptrend should not continue. He suggested the path forward might be more of a gradual climb through year-end.

White House economic adviser Kevin Hassett has emerged as a leading contender to replace Fed Chair Jerome Powell. This development has boosted market hopes for additional monetary policy easing in coming months.

Bitcoin trading volume remained elevated in the 24 hours following the Monday selloff. The 24-hour low and high reached $83,862 and $87,325 respectively. Buy-the-dip sentiment appeared among traders during the recovery period.

The total Bitcoin futures open interest increased 0.25% to $57.70 billion. BTC futures open interest on CME climbed 0.63% but declined 0.72% on Binance and 3.57% on Bybit.

The combination of profit-taking, thin liquidity, and caution ahead of macroeconomic events drove the recent volatility. Uncertainty around the timing and scale of future policy easing continues to inject volatility into crypto markets. Investors are monitoring both the Fed decision and political developments in Washington as President Trump considers Powell’s potential successor.

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