Bitcoin tumbled under $90,000 on Tuesday, marking its lowest level in seven months and raising fresh concerns about whether the 2025 crypto rally is losing steam. The world’s biggest cryptocurrency has now wiped out all its gains for the year, falling nearly 30% from its October peak above $126,000.
Trading at $89,953 in Asian markets, Bitcoin slipped another 2% after breaking a critical support level near $98,000 last week. Analysts point to fading expectations of U.S. rate cuts and global market uncertainty—factors that traditionally hit high-risk assets like crypto the hardest.
According to Joshua Chu, co-chair of the Hong Kong Web3 Association, the downturn has been made worse by institutional investors exiting the market after aggressively buying during the rally. “When macro pressure rises and buyers disappear, confidence can collapse in a flash,” he warned.
Crypto Stocks Slide Alongside Bitcoin
The selloff has spread to major crypto-linked stocks. Companies such as MicroStrategy, miners Riot Platforms and Marathon Holdings, and leading exchange Coinbase, have all recorded sharp declines as sentiment sours.
Asian stock markets were mostly lower as well, with tech-heavy indices in Japan and South Korea taking notable hits.
Ethereum hasn’t escaped the downturn either. Ether has plunged nearly 40% since reaching above $4,955 in August, slipping another 1% on Tuesday to trade at $2,997, reflecting persistent weakness across the crypto sector.
Matthew Dibb, CIO of Astronaut Capital, said overall sentiment remains shaky following the October leverage wipeout. He warned that the next major support zone sits near $75,000, which could be tested if market volatility stays elevated.
Historically, steep Bitcoin declines have often foreshadowed broader equity market pullbacks—a pattern seen earlier this year when crypto’s slump preceded April’s stock market turbulence following U.S. tariff news.
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