Bitcoin retreats as global stocks wobble, with ripple effects felt across Africa

By Benadeta Mwaura - Reporter

Kenya, December 16 2025 - Global financial markets entered a cautious phase this week as investors pulled back from riskier assets, triggering declines in equities and cryptocurrencies, including bitcoin, amid uncertainty over interest rates and the global economic outlook.

Investors across Asia, Europe and the United States stepped back ahead of key U.S. economic data, particularly jobs and inflation figures that are expected to influence the direction of central bank policy.

The resulting risk-off mood weighed heavily on technology shares and other growth-linked assets, while safe-haven currencies such as the U.S. dollar and Japanese yen strengthened.

Bitcoin mirrored this broader retreat in risk appetite. Bitcoin currently stands around $85,000–$86,000, trading below recent support levels as risk- off sentiment grips global markets. Reports from market trackers show BTC slipping below key thresholds, with prices near $85,800–$86,000 as of today as broader crypto and equity markets soften ahead of major economic data.

The downturn in crypto has been accompanied by declines in major altcoins like Ethereum and XRP, reflecting a broader industry pullback tied to macro uncertainty. This represents a notable retracement from earlier levels in the month, when Bitcoin was trading well above $90,000. Price charts indicate the decline from around the low $90,000s to the mid-$80,000s over recent days, as traders reacted to weak risk sentiment and potential tightening or delayed easing of global monetary policy.

Today’s movement isn’t unique to Bitcoin, other major digital assets have also retraced. Ethereum and XRP, among others, have extended losses as investors rotate toward safer assets, trimming exposure to volatile crypto. Despite the short-term weakness, some institutional voices remain cautiously optimistic about Bitcoin’s longer-term trajectory, with forecasts suggesting renewed upside potential in 2026. These views coexist with continued high volatility and sensitivity to macroeconomic conditions.

In Kenya and Africa, BTC’s valuation in local terms, for example on regional exchanges, reflects similar trends, with price in Nigerian naira traders showing fluctuations in line with global movements. Local price levels and volatility can be amplified by currency effects and liquidity differences in African crypto markets.

Markets are increasingly sensitive to signals from the U.S. Federal Reserve, with any indication that interest rates may remain higher for longer dampening enthusiasm for speculative investments such as cryptocurrencies.

When borrowing costs stay elevated, investors tend to favor cash, bonds and defensive assets over equities and digital currencies. Global stock markets followed a similar trajectory. Asian shares edged lower, European stocks struggled for direction, and Wall Street futures softened as traders waited for clearer economic signals.

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This pause reflects lingering concerns over slowing global growth, geopolitical tensions and uneven recoveries across regions. For Africa, and Kenya in particular, the global risk-off environment carries tangible consequences. African markets rely heavily on foreign portfolio inflows, which tend to retreat during periods of global uncertainty.

When investors in developed markets turn defensive, emerging and frontier markets often experience reduced capital inflows, weaker currencies and subdued equity performance. At the Nairobi Securities Exchange, market activity has remained cautious in recent sessions, reflecting both global headwinds and local economic pressures.

Analysts say foreign investor participation remains muted, partly due to higher global interest rates that make developed market assets more attractive relative to African equities. The stronger U.S. dollar also adds pressure, as it raises the cost of servicing dollar-denominated debt and weighs on local currencies.

In Kenya and across the continent, cryptocurrencies play a growing role in remittances, cross- border payments and informal savings. While long-term adoption trends remain intact, short-term price volatility can affect confidence among retail users and small businesses that increasingly rely on digital assets as alternatives to traditional financial systems.

Despite the current pullback, market watchers note that bitcoin’s longer-term trajectory remains closely linked to global monetary conditions. If inflation cools and central banks begin easing policy in 2026, risk assets could regain momentum, potentially benefiting both cryptocurrencies and emerging markets.

Conversely, prolonged tight financial conditions would likely continue to cap gains and keep investor sentiment fragile. For African economies navigating high debt burdens, climate shocks and funding gaps, the global market slowdown adds another layer of complexity.

What happens in U.S. labour markets and central bank meeting rooms increasingly shapes financial outcomes far beyond Western capitals, influencing investment flows, currencies and economic stability across Africa.