Bitcoin Price, Crypto Stocks Fall. There’s No Crypto Rally in Sight.

Bitcoin has given back major gains in recent months.

Key Points

• Bitcoin’s price decreased by 2.5% over 24 hours to $87,700, having fallen from a record high above $125,000 in October.
• Investtech analysis suggests Bitcoin is technically neutral short-term, approaching support at $86,000, with a break below signaling negativity.
• Other cryptocurrencies also saw declines, with Ethereum losing 2.5%, Ripple retreating 2%, Solana sliding 2%, and Dogecoin down 1.5%.

Bitcoin and other cryptocurrencies were lower on Tuesday amid a period of stagnant trading for digital assets, which have given back major gains in recent months. Declines were also dragging on stocks exposed to crypto.

The price of Bitcoin fell 1.3% over the past 24 hours to $88,101. The largest digital asset hit a record high above $125,000 in October but has since retreated dramatically. Cryptos face hurdles from eroding sentiment and a weak technical market backdrop, despite bullish bets on a rally by Christmas.

“Bitcoin…indicates a slower falling rate initially, or the start of a more horizontal development. The currency is approaching support at $86,000, which may give a positive reaction,” wrote investing platform Investtech based on an analysis of technical market indicators for Bitcoin. “A break downwards through $86,000 points will be a negative signal. The currency is assessed as technically neutral for the short term.”

Shares in companies exposed to crypto, either through their operations or corporate treasury, were also lower on Tuesday. Crypto exchange Coinbase’s stock dropped 2.8%, with shares in Strategy — which has significant Bitcoin holdings —down 2.5%.

Beyond Bitcoin, Ethereum —the second-largest crypto—lost 2.5% to below $3,000. Smaller tokens or altcoins were also weaker, with Ripple retreating 2%, Solana sliding 2%, and Dogecoin down 1.5%.

Write to Jack Denton at jack.denton@barrons.com