Bitcoin fell below $90,000 on Tuesday for the first time in seven months, a fresh signal that investors’ appetite for risk is waning sharply in financial markets.
A little later, part of the losses were recovered, so the value of the most popular cryptocurrency exceeded $91,300.
The sentiment-sensitive cryptocurrency has erased all of its 2025 gains and is now about 30 percent below its October peak above $126,000. It traded around $89,953 during the afternoon in Asia, after breaking through an important technical support level around $98,000 last week, Reuters reports.
Market participants say that a combination of growing doubts about future interest rate cuts in the US and weakened sentiment in global markets, which are showing signs of instability after a long stock market rally, have dragged crypto prices down.
“The chain sell-off has been reinforced by the withdrawal of companies and institutions that entered during the rally, increasing the risk of market-wide contagion. When support weakens and macro uncertainty rises, confidence can disappear at an incredible speed,” said Joshua Chu of the Hong Kong Web3 Association.
Shares of crypto-companies are also falling — MicroStrategy, miners such as Riot Platforms and Mara Holdings, as well as the Coinbase exchange, are recording strong losses. Asian markets were lower on Tuesday, especially technology stocks in Japan and South Korea.
Ether has also been under pressure for months and has lost about 40 percent of its value since its August high above $4,955, falling to around $2,997.
The fall of bitcoin at the beginning of the year preceded a broader sell-off that hit stocks in April, after the announcement of new US tariffs, so some investors fear that the current drop in cryptocurrencies could be an early signal of new frictions.
