Bitcoin Dips Under $85k as Crypto Stocks Plummet

Bitcoin hovered near $87,000 early Tuesday after a sharp drop under $85k. Total crypto market value across all coins has fallen by about $1.4 trillion from its October peak. A Japanese Government bond auction stabilised Japanese bond yields, while UK and European stocks were mostly steady, South Korean chipmakers rose on lower US tariffs.

Equities

The FTSE 100 fell 0.2% on Monday, with industrial names pulling the index lower as investors monitored domestic economic updates and awaited comments from US policymakers. Aerospace and defence stocks were some of the weakest performers. Melrose slipped 4.6% after announcing a new chief financial officer, while Rolls-Royce closed 2.9% down and BAE Systems fell 2.5%. Homebuilders also declined, with Barratt Redrow down 1.5% and Bellway falling 1.8% as sector sentiment softened.

Precious-metal miners moved sharply higher as gold prices strengthened late on Monday. Fresnillo rose 7.1% to reach a record high, and Hochschild Mining added 3.7%. Industrial miners also made gains, with Anglo American up 1.4% and Antofagasta climbing 2.2%. In consumer names, Reckitt rose 2.4% following an upgrade from Barclays. Infrastructure stocks split after HICL and TRIG dropped plans for a merger; HICL gained 3.4%, while TRIG fell 4.2%.

In the United States, the S&P 500 slipped 0.53% on Monday, the Dow fell 0.90% and the Nasdaq closed 0.38% lower. Higher Treasury yields weighed on several interest-rate-sensitive sectors throughout the session.

Crypto-related companies were among the biggest fallers after bitcoin briefly traded below $85,000. Coinbase closed 4.8% lower and Bitfarms dropped 5.7%. MicroStrategy, the largest listed holder of bitcoin, ended the day 3.3% down after falling as much as 12% earlier and lowering its 2025 earnings forecast on weaker cryptocurrency prices.

US retailers benefited from Cyber Monday activity. Walmart ended 0.9% higher and Target rose 0.8%, helping lift the S&P 500 retail index by 0.2%.

Economic updates added further context to trading. The ISM manufacturing PMI showed a ninth consecutive month of contraction in November, highlighting ongoing pressure on factory activity. Investors also looked ahead to Friday’s delayed PCE inflation release and next week’s Federal Reserve meeting, where markets continue to expect a December rate cut.

Forex & Commodities

The US dollar held steady early after a solid 10-year Japanese government bond auction eased pressure from Monday’s global fixed-income sell-off. The greenback edged up against the yen to 155.72, while the US dollar index stabilised around 99.44 following its first rise in more than a week.

Sterling traded slightly firmer at $1.322 as attention in London turned to the resignation of the head of Britain’s fiscal watchdog after last week’s inadvertent pre-budget data release. The euro held at $1.161 as diplomatic efforts continued over Ukraine.

Spot gold eased to $4218 early this morning after touching a six-week high late on Monday, with Treasury yields hovering near a two-week peak.

Traders continued to monitor expectations for a December US rate cut, with Fed funds futures implying a high probability of a 25-basis-point reduction. Federal Reserve Chair Jerome Powell offered no fresh policy signals in a speech at Stanford on Monday, while markets awaited this week’s ADP employment update and Friday’s delayed PCE inflation report.

Oil prices held firm early on Tuesday, with Brent at $63.24 and WTI at $59.45 after both benchmarks rose more than 1% on Monday. Traders assessed the fallout from Ukrainian drone strikes on Russian terminals and rising tension between Washington and Caracas.

The Caspian Pipeline Consortium confirmed that shipments from one Black Sea mooring point resumed on Monday, while OPEC+ reaffirmed a small output increase for December and a pause in the first quarter.