Bitcoin fell below $90,000 for the first time in seven months on Tuesday, signaling a weakening of investor appetite for risk in financial markets.
The risk-sensitive cryptocurrency has erased all of its 2025 gains and is now down nearly 30% from its October high of over $126,000.
In Asian afternoon trading, Bitcoin was trading around $89,953, down 2% after falling through chart support around $98,000 last week.
According to market participants, a combination of doubts about future U.S. interest rate cuts and shaky market sentiment after a long rally have pushed the crypto lower.
Several crypto custodians such as MicroStrategy (MSTR.O), miners such as Riot Platforms (RIOT.O) and Mara Holdings (MARA.O), and exchange platform Coinbase (COIN.O) have also come under heavy pressure, following the gloomy market sentiment.
In Asia, markets fell broadly on Tuesday, particularly in technology stocks in Japan and South Korea.
Other cryptocurrencies, including Ether (ETH), also endured prolonged pressure, falling nearly 40% from a high of over $4,955 in August and trading around $2,997, down 1%.
Bitcoin’s withdrawal earlier this year sparked a broader sell-off that also weighed on equities in April, after the announcement of US tariffs, raising concerns that crypto’s fall could be an early indicator of the broader market.
