Bitcoin falls below $90,000 for first time in 7 months
What's the story
Bitcoin has slipped below the $90,000 mark for the first time in seven months, indicating a decline in investor risk appetite across financial markets. The cryptocurrency has lost nearly 30% from its October peak of over $126,000. This drop comes as doubts about future US interest rate cuts and broader market jitters weigh on cryptocurrencies. Major crypto players and tech shares are also feeling the heat from this trend.
Market fluctuations
Market uncertainties and their impact on cryptocurrencies
A combination of uncertainty over future US interest rate cuts and the mood in broader markets is dragging down crypto. "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," Joshua Chu, co-chair of the Hong Kong Web3 Association, said. He added that when support thins and macro uncertainty rises, confidence can erode with remarkable speed.
Market impact
Crypto stockpilers and miners face market pressures
Crypto stockpilers, miners like Riot Platforms and Mara Holdings, and exchange Coinbase have all been affected by the souring mood in the market. Meanwhile, markets across Asia were down on Tuesday with a particular focus on technology shares in Japan and South Korea. This widespread pressure highlights how far-reaching these market fluctuations can be for different sectors.
Crypto downturn
Ether cryptocurrency also feels the market pressure
The cryptocurrency ether has also been under pressure for months, losing nearly 40% of its value from a peak above $4,955 in August. It traded 1% lower at $2,997 on Tuesday. A Bitcoin drawdown at the start of the year presaged a broader selloff that hit equities in April after the announcement of US tariffs. This has led to some concerns that the current tumble in crypto could be a leading indicator or ripple outward.