Crypto Markets Stabilize After Sharp Selloff, But Sub-$80K Bitcoin Remains Possible

Cryptocurrency markets stabilized on Tuesday following Monday’s sharp selloff, though caution remains high, analysts say. Bitcoin (BTC$88,196.85) rebounded above $87,000 in early U.S. trading, climbing roughly 3% from overnight lows. Ether (ETH$2,940.38) lagged, up just 1.4%, while altcoin majors such as BNB (BNB$845.97), XRP ($1.9106), and SUI ($1.4240) posted stronger gains of 3%–6%.

Crypto-related equities also recovered. Bitcoin-focused firm MicroStrategy (MSTR) and brokerage Robinhood (HOOD) rose 3%–4%, while Circle (CRCL), issuer of the $78 billion USDC stablecoin, jumped 9%. In a rare outperformance, crypto gained ground while U.S. equities fell modestly, with the S&P 500 down 0.5% and the Nasdaq off 0.3%.

Tuesday’s session followed delayed U.S. employment reports showing November’s unemployment rate rising to a four-year high of 4.6%. Despite this, markets are pricing only a 24% chance of a January Fed rate cut.

Analysts caution that bitcoin’s rebound may be short-lived. Samer Hasn, senior market analyst at XS.com, described BTC’s recent bounce from the November $80,000 low as a “corrective high” and warned that a fresh drop below $80,000 is likely. He noted $750 million in long liquidations over the past two days, including $250 million in bitcoin futures, leaving the market “fragile” as traders either step aside or are forced out.

“The market faces a short-term tug-of-war between delayed monetary easing and bitcoin’s long-term appeal as a store of value,” said David Hernandez, crypto investment specialist at 21Shares. He added that immediate selling pressure could push BTC to defend key support levels, yet its finite supply continues to attract “smart money” accumulation amid macroeconomic uncertainty.