Bitcoin Struggles as Market Slump Deepens Despite Equity Rebound

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Bitcoin entered the week on a weak footing, unable to mirror the strength seen in Monday’s equity market rally. While global stocks bounced back convincingly, the world’s largest cryptocurrency remained stuck in a narrow band, continuing a multi-day stretch of sluggish momentum following last week’s decline.

After a brief weekend recovery, Bitcoin slipped as much as three percent on Monday, briefly falling below the eighty-six-thousand-dollar mark before stabilising. In contrast, several alternative tokens displayed relative strength, with XRP gaining around five percent and Solana edging higher by more than two percent. Despite the modest rebound from Friday’s lows near eighty thousand five hundred dollars, broader sentiment across digital assets remains subdued, with traders finding little reason for optimism. The downturn persists even as institutional participation accelerates and the industry receives significant regulatory support from the current US administration.

Market participants note that the absence of a broad-based rally in alternative cryptocurrencies has limited capital deployment into purely crypto-focused strategies. Liquidity remains thin, and overall performance continues to lag behind the strong recovery in equities, contributing to the cautious tone across trading desks.

Options activity reflects the defensive positioning. Traders are increasingly seeking downside protection, with demand rising for put options tied to the eighty-thousand-dollar level, surpassing interest at higher strike prices. This shift makes lower-strike protection the most actively sought after, according to derivatives data from major options venues.

Another notable signal comes from the funding rate in Bitcoin perpetual futures. This metric, which often represents market sentiment, has turned negative for the first time in several days. The move suggests that bearish positioning now outweighs long interest, marking a clear change from the persistent positive readings that held even as the market endured weeks of weakness. The reversal underscores growing concerns that the current downturn may deepen unless sentiment stabilises.

November is also on track to become Bitcoin’s weakest month since the turbulence of 2022, a period defined by a series of corporate failures that eventually led to the collapse of major exchanges and service providers. The current pressure has renewed focus on key technical levels, with traders monitoring the eighty-five thousand two hundred-dollar zone as the next support to defend. Analysts note that while macroeconomic uncertainty and technical pressures currently outweigh fundamental drivers, periods of forced liquidations have historically been followed by sharp rebounds—provided no fresh shocks emerge.