Bitcoin slipped below $90,000 on Tuesday for the first time in seven months, signaling waning investor confidence in the crypto market.
The digital currency has erased 2025 gains and is now down nearly 30% from its October high above $126,000.
The world’s largest cryptocurrency traded at $89,953 in Asia on Tuesday, down 2% after breaching key chart support near $98,000 last week. Analysts say a mix of doubts over future U.S. interest rate cuts and broader market uncertainty has weighed heavily on risk-sensitive assets like Bitcoin.
Joshua Chu, co-chair of the Hong Kong Web3 Association, said:
"The cascading selloff is amplified by listed companies and institutions exiting their positions after piling in during the rally, compounding contagion risks across the market. When support thins and macro uncertainty rises, confidence can erode with remarkable speed."
Crypto stocks also feel pressure
Major crypto-linked stocks have mirrored Bitcoin’s decline. Companies such as Strategy (MSTR.O), miners Riot Platforms (RIOT.O) and Mara Holdings (MARA.O), and exchange Coinbase (COIN.O) have all dropped as sentiment sour in the market.
Markets across Asia were broadly down on Tuesday, with technology sectors in Japan (.N225) and South Korea (.KS11) under particular pressure.
Ethereum’s ether has also been under strain, losing nearly 40% of its value since peaking above $4,955 in August. On Tuesday, it traded 1% lower at $2,997, highlighting persistent weakness across major cryptocurrencies.
Matthew Dibb, CIO at Astronaut Capital, highlighted ongoing low sentiment in the crypto sector:
"All in all, sentiment is pretty low in crypto and has been since the leverage wipeout of October. The next level of support is $75k, which could hit if volatility in markets remains high."
Historically, Bitcoin drawdowns have sometimes preceded broader equity selloffs. Analysts note that the early-year drop in Bitcoin foreshadowed market turbulence in April, following U.S. tariff announcements.
