Bitcoin Dips Below $88,000 After Failed Rebound Attempt, Triggering Crypto Market Weakness
The correlation with Nasdaq strengthens, with every drop in US stocks causing sell-offs in BTC and major altcoins.
The drop is accompanied by a gradual unwinding of leverage, signaling increased caution rather than widespread panic.
Bitcoin slipped below $88,000 on Monday morning, erasing the rebound seen during the Asian session and putting an end to a fragile recovery attempt that had neared $90,000. This movement dragged down all major crypto market caps, alongside the simultaneous decline in Nasdaq futures.
The Bitcoin rebound didn’t hold up in Western trading hours
After briefly surpassing $90,000 in Asia, Bitcoin quickly reversed course to fall around $87,700. This drop put pressure on major altcoins. ETH, XRP, SOL, and DOGE all shed their initial gains, confirming the fragility of the bullish momentum seen earlier in the session.
A clear signal: the market lacks buying support as the US session approaches.
The correlation with Nasdaq resurfaces
This movement fits a now familiar pattern. Nasdaq 100 Index futures were down about 0.5% when Bitcoin fell, signaling a cautious Wall Street opening. According to market-making firm Wintermute, the positive correlation between Bitcoin and Nasdaq tends to strengthen precisely during tech stock downturns.
In other words, when risk diminishes in stock markets, Bitcoin becomes a liquidated asset rather than a safe haven. This dynamic contrasts with the decoupling narrative still advocated by some investors.
Gradual deleveraging in derivative markets
The correction also saw a slight leverage reduction. Total open interest on Bitcoin futures contracts dropped to around 533,000 BTC, from nearly 540,000 BTC earlier in the day. This figure had surged when prices approached $90,000, indicating traders had bolstered directional positions.
This reduction suggests a cautious exposure trim, rather than panic. The market appears more in a digestion phase than a true capitulation.
Persistent weakness during US trading hours
This pattern isn’t new. According to Laser Digital, Bitcoin and Ethereum have consistently underperformed during US hours for weeks, with declines sometimes exceeding 3%, offset by relative strength in Asia. Among upcoming crypto ETFs, a product solely investing in Bitcoin outside US market hours recently appeared.
A crucial factor looms: year-end tax optimization-related sales. After a lackluster 2025 compared to other asset classes, cryptos serve as a balancing variable in institutional portfolios.
In the short term, the market’s message is clear. As long as the Nasdaq remains under pressure and US flows dominate the session, every Bitcoin rebound is likely to face a wave of disciplined selling.
