Bitcoin fell below $90,000 for the first time in seven months on Tuesday, driven by a rapid decline in risk appetite in financial markets. This wiped out all the gains the cryptocurrency had made throughout 2025 and brought its value loss since its peak above $126,000 in October to nearly 30%. In Asian trading, Bitcoin fell 2% to $89,953; the break of key technical support around $98,000 last week accelerated the sell-off.
According to market participants, doubts about expectations of a US interest rate cut and a fragile global market sentiment following a long rally are dragging down crypto assets.
Joshua Chu, Co-Chair of the Hong Kong Web3 Association, commented, “The chain reaction of selling pressure is growing with the exits of companies and institutions that took positions in the rally, increasing the risk of contagion in the market.”
Crypto-focused companies were also affected by the sharp sell-off. Shares of MicroStrategy, Riot Platforms, Mara Holdings, and Coinbase declined along with the negative market sentiment. Asian stock markets were also down on Tuesday; technology stocks, especially in Japan and South Korea, were under pressure.
Ethereum is similarly performing weakly. Cryptocurrency has lost approximately 40% of its value since its peak above $4,955 in August, and fell 1% to $2,997 on Tuesday.
Experts point out that the Bitcoin correction at the beginning of the year was a precursor to the sell-off seen in stocks following the announcement of US tariffs in April, and that the current decline could also be a harbinger of a wider market correction. Astronaut Capital CIO Matthew Dibb stated that sentiment in crypto has been weak since the leverage liquidation in October, adding, “The next major support is at the $75,000 level; it could be tested if market volatility remains high.”
