For the first time in seven months, the largest cryptocurrency - Bitcoin - fell below $90,000, which analysts said was another sign that investors' appetite for risk is sharply decreasing in global financial markets, reports "Reuters".
Bitcoin, which is particularly sensitive to market sentiment, has already erased the gains accumulated for 2025 so far, and is now down nearly 30% from its October peak, when it reached a value of more than $126,000.
In Asian markets on Tuesday, bitcoin was trading down 2% to $89,953, after having collapsed below key chart support around $98,000 last week.
According to analysts, the current decline in the cryptocurrency's value is due to a combination of factors, including doubts about future interest rate cuts in the US and a broader shake-up in market sentiment after a prolonged rally.
"The cascading sell-off is being exacerbated by listed companies and institutions exiting their positions after accumulating assets during the rally, further increasing the risk of panic spreading to the market," said Joshua Chu, co-chairman of the Hong Kong Web3 Association.
"When support thins and macroeconomic uncertainty increases, confidence can evaporate at a remarkable rate," he added.
Markets in Asia saw sharp declines on Tuesday, with pressure particularly heavy on technology stocks in Japan and South Korea.
Cryptocurrency ether has also been under pressure for months, losing nearly 40% of its value so far, falling from a peak of over $4,955 in August to $2,997 on Tuesday, down 1% on the day.
Bitcoin’s early-year plunge came after a broader sell-off that hit stock markets in April after the announcement of U.S. tariffs. That has raised concerns that the current crypto slump could once again be an early indicator of a shake-up in other markets.
"Overall sentiment in the crypto sector is quite subdued and has remained so since the deleveraging in October," said Matthew Deeb, chief investment officer at Astronaut Capital.