Bitcoin Plunges Below $86,000 as Global Markets Tumble in Risk-Off Start to December

Global stocks and cryptocurrencies experienced a sharp decline, signaling heightened risk aversion as investors brace for a wave of US economic data this week. Despite persistent expectations for a December Federal Reserve interest-rate cut, market sentiment turned bearish.

Futures contracts on the S&P 500 dropped as much as 0.8%, while those for the Nasdaq 100 fell 1.1%. European futures also indicated a weak opening for shares, reflecting widespread caution.

Bitcoin tumbled 6% to slide below $86,000, reigniting a broad selloff that had previously shown signs of stabilization. Most other cryptocurrencies followed suit, with Ether dropping more than 7%, highlighting the pervasive downturn in the digital asset space.

This market movement underscores the volatility and interconnectedness of traditional and crypto markets, especially ahead of key economic indicators.