Bitcoin fell below $90,000 for the first time in seven months on Tuesday, wiping out its 2025 annual gains, falling nearly 30% from its October high of more than $126,000.
Bitcoin fell below $90,000 for the first time in seven months on Tuesday, wiping out its 2025 annual gains, falling nearly 30% from its October high of more than $126,000.
Bitcoin was trading down 2% at $89,953 in Asian afternoon trading, after trading below $96,000 for the first time in more than six months on Friday, Reuters reported .
Market participants said the cryptocurrency drop was triggered by both doubts about a possible cut in US interest rates and general instability in broader markets, which have "faltered" after a long rally.
“The cascading sell-off is being exacerbated by listed companies and institutions exiting their positions after ramping up investment during the upswing, exacerbating contagion risks across the market. As support levels weaken and macroeconomic uncertainty increases, confidence can erode at an alarming rate,” said Joshua Chu, co-chair of the Hong Kong Web3 Association.
The fall of Bitcoin also affected companies focused on the crypto market: Strategy, miners Riot Platforms and Mara Holdings, as well as the Coinbase exchange.
In addition, Asian markets saw a decline on Tuesday, particularly affected by shares of technology companies in Japan and South Korea.
The cryptocurrency ether has also been under pressure for several months and has lost almost 40% of its value from a peak above $4,955 in August to 1% lower at $2,997 on Tuesday.
Bitcoin’s collapse earlier this year was a precursor to the broader sell-off that hit stock markets in April after the US imposed tariffs, raising concerns that the cryptocurrency’s current decline could be a leading indicator or have a domino effect on other assets.
“Overall, sentiment in the crypto market is quite bearish, and has been since October, when market volatility remained high. The next support level is $75,000, and it could be reached if market volatility remains high,” said Matthew Dibb, chief investment officer at Astronaut Capital.
“Overall, it’s been a great year for investors, but concerns are clearly rising towards the end of the year. We could see further volatility over the next few weeks as the Christmas trading period approaches,” said Nick Tweedale, chief market analyst at AT Global Markets in Sydney.
