WASHINGTON, Dec 2, (AP): Bitcoin and companies tied to cryptocurrencies extended a nearly two-month swoon Monday, tracking with a broader market sell-off in technology companies that many see as overvalued. Bitcoin slid 5.6% after being down nearly 12% earlier in the day, settling in just above $86,000. Early Tuesday, it was trading around $86,650.

The most-traded cryptocurrency is down about 33% since hitting a record $126,210.50 on Oct. 6, according to crypto trading platform Coinbase. Bitcoin had soared since April in line with the stock market and driven partly by a more crypto-friendly tone in Washington. Companies that enable investors to buy and sell cryptocurrencies, as well as the growing number of companies who have made investing in bitcoin their main business focus, were hammered in Monday's sell-off.

Coinbase Global fell 4.8% and online trading platform Robinhood Markets lost 4.1%. Bitcoin mining company Riot Platforms dropped 4%. Strategy, the biggest of the so-called crypto treasury companies that raises money just to buy bitcoin, fell 3.3%. The company has reported holding 649,870 bitcoin. As of 4 p.m. EST Monday they were worth about $55.7 billion.

Earlier, Strategy said it expects bitcoin to end the year between $85,000 and $110,000, down from an Oct. 30 forecast of $150,000. American Bitcoin, in which President Donald Trump's sons Eric Trump and Donald Trump Jr. hold a stake, fell 15.6% and is now down nearly 47% since Sept. 30. Other Trump-related crypto ventures have declined as well.

The market value for the World Liberty Financial token, or $WLFI, has fallen to about $4.14 billion from above $6 billion in mid-September, according to coinmarketcap.com And the price of a meme coin named for President Donald Trump, $TRUMP, is $5.70, a fraction of the $45 asking price just before his inauguration in January.

One popular way of investing in bitcoin is through spot bitcoin ETFs, or exchange-traded funds, which allow investors to have a stake in bitcoin without directly owning the cryptocurrency. According to data from Morningstar Direct, investors pulled $3.6 billion out of spot bitcoin ETFs in November, the largest monthly outflow since the ETFs began trading in January 2024. Bitcoin futures are down nearly 24% in the past month. At the same time, gold futures are up almost 7%.