The value of Bitcoin fell below $90,000, deepening a month-long decline that wiped out all of the cryptocurrency's gains in 2025 and affected sentiment in the digital asset world, UNN reports with reference to Bloomberg.
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The largest token fell 2.4% during Asian trading, extending its decline from a record high of over $126,000 set in early October. Bitcoin last traded below this level, falling to $74,400 in April, after US President Donald Trump upended global financial markets with his initial plan to impose tariffs.
This decline comes amid intensifying economic challenges, including renewed fears about interest rate policy and inflated valuations in speculative markets. Bitcoin briefly fell below $90,000.
Traders are reassessing the possibility of a US Federal Reserve interest rate cut in December, and stock markets are falling from recent highs, reducing risk appetite and making Bitcoin vulnerable to further declines.
"With the probability of a Fed rate cut in December below 50%, cryptocurrency markets continue to fall after losing the important $100,000 level in Bitcoin," said Shilian Tan, managing partner at Monarq Asset Management.
The cryptocurrency market is struggling to find support after early October sell-offs that led to over $19 billion in liquidations and depreciated the market value of tokens by over $1 trillion. While some institutional holders have largely maintained their positions, retail investor activity and dip buying have declined, especially among speculative altcoins. According to Coinglass, approximately $950 million in long and short positions have been liquidated in the past 24 hours.
Treasury companies dealing with digital assets – public companies like Michael Saylor's Strategy Inc., which accumulated cryptocurrency assets earlier this year – are now under pressure, with some forced to reconsider their positions as token prices have fallen below key accumulation levels.
Meanwhile, options traders are betting on more severe losses, with demand for downside protection at strike levels of $85,000 and $80,000 dominating recent flows.
Bitcoin pared losses, trading at $90,391 as of 12:05 PM in Singapore on Tuesday.