Bitcoin trades below $85,000 as analysts examine the CVDD (Cumulative Value-Days Destroyed) indicator for possible support levels. The metric, which tracks long-term holder selling activity, points to a potential floor near $45,880 if bearish conditions extend into 2026. Bitcoin has declined over 30% from its recent all-time high established less than two months ago.

Strategy's Bitcoin treasury implies a valuation 78% higher than MSTR's current share price, according to CryptoQuant analyst Carmelo Alemán. The stock has entered a historical undervaluation zone based on price band metrics. The company continues accumulating BTC at an average cost of $74,432 per coin.

Bitcoin fell nearly 6% to trade around $85,000, extending losses from an October peak near $125,000. The Crypto Fear and Greed Index registered near 20, reflecting extreme fear as central bank communications tightened financial conditions. More than $637 million in long positions were liquidated during the decline.

Bitcoin dropped below $86,000, erasing approximately $240 billion from the cryptocurrency market. Data show large holders have reduced their accumulation rate while smaller retail wallets increased purchasing activity. Strategy acquired an additional 130 BTC for around $11.7 million, bringing total holdings to 650,000 BTC.

Binance users purchased 6,870 BTC valued at approximately $628 million when Bitcoin traded above $91,400, while long-term holders reduced positions, data show. Short-term holder realized cap hit $51 billion on November 23, the highest since December 2024, as long-term holder realized cap fell by $47 billion. The pattern has preceded market corrections in December 2024 and March 2024.

Bitcoin's sharp selloff has prompted three distinct interpretations from market analysts. Arthur Hayes attributes the decline to Bank of Japan rate-hike signals affecting yen liquidity during Asia-Pacific trading hours. Nik Algo argues the drop resulted from algorithmic rebalancing at UTC day, week, and month boundaries. Peter Brandt warns the rally structure mirrors historical parabolic cycles that preceded 75% drawdowns.

Strategy Inc announced on December 1, 2025, the establishment of a $1.44 billion U.S. dollar reserve to support preferred stock dividends and interest payments. The company holds 650,000 Bitcoin, representing approximately 3.1% of the cryptocurrency's eventual total supply. CEO Phong Le stated the reserve covers 21 months of dividend obligations.

Michael Saylor posted a cryptic message on X referencing "green dots" alongside Strategy's bitcoin holdings and equity guidance charts, after the company's market net asset value fell below 1.0x this week. Strategy's published guidance states that when mNAV falls below 1.0x, the firm will "consider issuing credit to repurchase MSTR," prompting speculation the company may shift from bitcoin purchases to share buybacks. Analysts identify $180 as a critical resistance level for MSTR shares, which are currently testing support near $170 following a sharp decline.