Bitcoin Near Critical Support as Selloff Deepens 02/12/2025

HOT stories for today

Market wrap:

• U.S. equities declined Monday, tracking a broad selloff in cryptocurrencies and extending volatility into the first sessions of December. The S&P 500 fell 0.53% the Nasdaq Composite slipped 0.38%, and the Dow Jones Industrial Average dropped 0.9%. All three benchmarks snapped five-day winning streaks. Bitcoin slid roughly 6% to trade below $86,000, marking its worst session since March and adding pressure to risk assets. Last week’s Thanksgiving-shortened rally was fueled in part by dovish Federal Reserve commentary. Still, investors are now turning to the upcoming September PCE reading, the final notable macro release ahead of the December FOMC meeting.
• Manufacturing continued to contract in November, with the latest PMI showing a ninth consecutive monthly decline. In Washington, President Trump has reportedly selected a successor to Fed Chair Jerome Powell but has not yet announced the choice, after economic adviser Kevin Hassett emerged as a frontrunner last week. Policy remarks from a Bank of Japan official drove volatility across currency markets Monday, pushing government bond yields higher and sending the Nikkei 225 lower. On the consumer front, Black Friday spending rose 4.1% year over year, according to Mastercard, while online sales the following day increased 10%. In commodities, silver reached fresh highs and gold posted a fourth consecutive monthly gain. 

Bitcoin Near Critical Support as Selloff Deepens

• Bitcoin fell below $85,000 on Monday, sliding 6.5% to $84,706 in its steepest one-day drop since March, as rising Japanese government bond yields and broader risk aversion weighed on cryptocurrencies and equities. The move extended a selloff that has pulled bitcoin more than 30% below its early-October record high. Some analysts, however, see indications that the downturn may be nearing exhaustion. Katie Stockton, founder of Fairlead Strategies, said DeMark Indicators are poised to flash a “counter-trend buy signal” as soon as Tuesday,  the first since 2022, suggesting bitcoin has entered oversold territory in the short term. A rebound triggered by the signal, she added, could help preserve long-term support near $80,600.
• The pullback in digital assets spilled into other risk markets. Ethereum dropped more than 8% to around $2,740, while MicroStrategy shares fell 6.8% after the company announced a $1 billion U.S. dollar dividend, days after acknowledging it could be forced to sell bitcoin if conditions deteriorate. The weakness coincided with a soft start to December for U.S. stocks. The S&P 500 and Nasdaq Composite each declined about 0.4%, while the Dow Jones Industrial Average slipped 0.8%. Stockton noted that correlations between bitcoin and equities have strengthened during periods of risk aversion, making bitcoin losses a growing concern for equity investors.

Stocks on the move:

• CrowdStrike Holdings Inc (CRWD, -0.99%): The cybersecurity firm is expected to report adjusted earnings of $0.94 per share and revenue of $1.2 billion for its fiscal fourth quarter, with investors focused on guidance for fiscal 2026.
• Marvell Technology Inc (MRVL, +1.9%): Analysts expect adjusted EPS of $0.75 on revenue of $2.06 billion for the third fiscal quarter, with attention on custom AI accelerator traction and demand from data center customers.
• Okta Inc (OKTA, +0.39%): The identity management company is projected to post adjusted earnings of $0.76 per share, reflecting double-digit year-over-year growth, with third-quarter revenue estimated at roughly $730 million.
• MongoDB (MDB, +15%): Shares jumped after the company beat earnings and revenue expectations and issued strong guidance.

Watchlist: NVDA, MDB, MRVL, OKTA, CRWD, AMD, META, AMZN

Key Economic Events Today:

EST time

10:00 am: USD FOMC Member Bowman Speaks



Earnings

BMC (Before Market Open): Bank of Nova Scotia (BNS)
AMC (After Market Close): Marvell Technologies (MRVL), Okta Inc. (OKTA), GitLab Inc. (GTLB)


The TEFS Analyst team wishes you a successful day!