The price of Bitcoin has tumbled below the psychologically significant level of US$90,000, a threshold it hasn't breached in seven months. This sharp decline deepens a month-long slide that has now completely erased the digital currency's gains for the year 2025, sending shockwaves through the broader digital-asset ecosystem.
A Steep Decline from Record Highs
On Tuesday, the world's largest cryptocurrency fell by as much as 2.8 percent, continuing its downward trajectory from an all-time peak of over US$126,000 established in early October. The last instance of Bitcoin trading beneath US$90,000 occurred in April, when it plummeted to approximately US$74,400 following market upheaval caused by former U.S. President Donald Trump's initial trade tariff proposals. During the latest sell-off, Bitcoin managed to pare some losses, trading around US$91,137 by 8:30 a.m. New York time.
Economic Headwinds and Shifting Sentiment
This dramatic reversal unfolds against a backdrop of mounting economic challenges. Renewed uncertainty surrounding the U.S. Federal Reserve's interest-rate policy and overstretched valuations in speculative markets have collectively soured risk appetite among investors. Traders are now reassessing the likelihood of an interest-rate cut in December, with probabilities falling below 50 percent.
Shiliang Tang, managing partner at Monarq Asset Management, commented on the situation, stating, "With Fed December rate cuts pricing below 50 percent chance now, crypto markets continue to grind lower after losing the important US$100,000 level in BTC." This sentiment is reflected in options markets, where traders are actively seeking downside protection, with significant demand for puts at the US$85,000 and US$80,000 strike prices.
Market Strain and Institutional Pressures
The cryptocurrency market has failed to establish a solid footing since a major selloff in early October. That event triggered more than US$19 billion in liquidations and wiped out over US$1 trillion in total token market value. While a core group of institutional investors has largely maintained its positions, retail participation and opportunistic buying during price dips have significantly diminished, especially for more speculative alternative coins.
Data from Coinglass indicates that long and short positions worth approximately US$950 million were liquidated in the past 24 hours alone due to volatile price movements. Further pressure has come from a group of 12 spot Bitcoin ETFs, which have seen net outflows of about US$2.8 billion so far in November. This marks a stark reversal for products that had accumulated tens of billions in new assets following Trump's presidential victory a year prior.
Adding to the market's woes, digital-asset treasuries—public companies like Michael Saylor's MicroStrategy Inc. that aggressively accumulated crypto—are facing increased financial strain. Some are being forced to reassess their holdings as token prices fall below crucial levels at which they were initially purchased.
Volatility and Opportunity
Despite the prevailing negative sentiment, some market observers see a potential silver lining. They suggest that the current environment, characterized by ETF outflows and treasury distress, could present a strategic buying opportunity for long-term bulls. Nick Ruck, a director at LVRG Research, summarized the mixed outlook: "We expect Bitcoin to see more volatility for the next few months as long-term buyers view this drop as a good opportunity, while trading institutions may de-risk as global macro factors change portfolio projections."
The convergence of these factors—shifting monetary policy expectations, institutional selling pressure, and strained corporate balance sheets—has created a perfect storm for the world's leading cryptocurrency, leaving investors to navigate one of its most challenging periods in recent memory.
