Bitcoin dropped below $90,000 on Tuesday for the first time in seven months, signaling a slowdown in investor risk appetite. The cryptocurrency has erased its 2025 gains and is now down nearly 30% from its October peak of over $126,000.
During Asia trading, Bitcoin fell 2% to $89,953, after breaking key support around $98,000 last week. Analysts attribute the decline to uncertainties over future U.S. interest rate cuts and weaker sentiment in broader financial markets.
Joshua Chu, co-chair of the Hong Kong Web3 Association, explained that the selloff is worsened by institutions and listed companies exiting positions after benefiting from the rally. “When support thins and macro uncertainty rises, confidence can erode quickly,” he added.
The negative mood in crypto markets has affected major players such as miners Riot Platforms, Mara Holdings, and exchanges like Coinbase. Technology stocks in Japan and South Korea also experienced pressure, reflecting a broader risk-off environment.
Ether, another major cryptocurrency, has also suffered. The token fell nearly 40% from a peak of $4,955 in August, trading around $2,997 on Tuesday.
Some experts warn that Bitcoin’s current drawdown could signal wider market volatility. Earlier in the year, a dip in Bitcoin preceded a broader selloff in equities after U.S. tariff announcements. Matthew Dibb, chief investment officer at Astronaut Capital, noted that market sentiment remains low following the leveraged wipeout in October.
He added that the next support level for Bitcoin could be around $75,000 if market volatility continues. Investors are closely watching for signs of stabilization, but uncertainty in both macroeconomic conditions and crypto-specific factors is weighing heavily on the market.
As cryptocurrencies remain sensitive to macro trends and investor sentiment, analysts recommend caution, emphasizing the importance of understanding risk when investing in digital assets like Bitcoin.
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