Bitcoin fell below $90,000 on Tuesday for the first time in seven months, signaling a sharp decline in investor confidence across the cryptocurrency market. The world’s largest digital asset has now wiped out all its gains for 2025 and is down nearly 30% from its October peak of over $126,000.
In Asian trading, Bitcoin dipped to $89,953, losing another 2% after breaking key support near $98,000 last week. Market analysts say concerns over delayed U.S. interest rate cuts and global economic uncertainty are pressuring riskier assets, including major cryptocurrencies.
Experts believe institutional selling has accelerated the downturn. Joshua Chu, co-chair of the Hong Kong Web3 Association, said that listed companies and big investors exiting their positions have intensified market stress. He noted that when economic uncertainty rises, confidence in crypto can disappear very quickly.
Crypto-related stocks have also been hit hard. Major companies such as Strategy, miners Riot Platforms, and Mara Holdings, and exchange Coinbase have all recorded notable losses as market sentiment weakens. Broader Asian markets saw declines as well, with tech sectors in Japan and South Korea under pressure.
Ethereum is also struggling. Ether has lost nearly 40% of its value since reaching above $4,955 in August. On Tuesday, it traded at $2,997, down 1%, reflecting ongoing weakness across the crypto sector.
Matthew Dibb, CIO at Astronaut Capital, said sentiment has remained low since the major leverage wipeout in October. He warned that Bitcoin could fall toward the next support level of $75,000 if market volatility continues.
Analysts point out that declines in Bitcoin have sometimes preceded wider drops in global equity markets. The earlier fall in Bitcoin this year came before stock market turbulence in April following U.S. tariff-related announcements.
