Analysis: Bitcoin still fluctuates wildly between $85,000 and $94,000

Bitcoin fell below $86,000 for the first time in two weeks, weakening investor sentiment as the world's largest cryptocurrency slid further into bear market territory. Analysts said bitcoin was sliding towards the lower end of its recent trading range, and whenever the price rallied, it was met with a sell-off from investors who bought near record highs in early October. Bitcoin fell as much as 3.3 per cent to $85,578 on Monday, down about 30 per cent from its record high of more than $126,000. "Bitcoin is still fluctuating wildly between $85,000 and $94,000, and there is a general lack of interest and low volume across the cryptocurrency market," said Bohan Jiang, senior derivatives trader at FalconX. Bitcoin has fallen in tandem with other risky assets in recent weeks but failed to follow the upside as they rallied, breaking its usual positive correlation. Analysts pointed out that the decline highlights the pressure on the market in an environment of weak liquidity and declining risk appetite, even as the Federal Reserve cut interest rates last week failed to revive momentum in digital assets.