Bitcoin (COIN:BTCUSD) slid below the $90,000 mark on Tuesday for the first time in almost seven months, as doubts over the Federal Reserve’s next policy steps and continued delays in key U.S. economic data sapped demand for speculative assets.
As of 00:22 ET (05:22 GMT), the world’s largest cryptocurrency was down 5.4% at $90,091.5.
Over the past 24 hours, Bitcoin briefly touched $89,471.4, extending its retreat to nearly 30% from the late-October high above $126,000. The selloff intensified after the token failed to hold the $94,000 support level and flashed a technical “death cross” based on short- and long-term moving averages.
Fed uncertainty triggers flight from risk
Market confidence has weakened as traders scale back expectations for a rate cut at the Fed’s December meeting. Several policymakers — including Chair Jerome Powell — have conveyed a reluctance to ease further, leaving the outlook unusually murky.
Caution has also been amplified by the recent backlog of economic releases following the extended U.S. government shutdown, which has left officials and investors without fresh data. That logjam should begin clearing this week, with September’s nonfarm payrolls set for release on Thursday.
Bitcoin pressured by ETF softness and heavy liquidations
Spot Bitcoin ETFs have seen cooling inflows in recent sessions, reflecting more conservative positioning from institutional buyers amid elevated volatility.
Stocks tied to crypto miners and blockchain firms have also slumped, adding to the risk-off sentiment rippling across digital asset markets.
The downturn follows a raft of liquidation cascades in crypto derivatives markets, where billions in leveraged positions were force-closed. Data from several major analytics providers indicated that earlier this month, more than $19 billion in crypto holdings were wiped out in a single day, sparking forced selling across the board.
Bitcoin’s dip back toward April levels highlights how sharply sentiment has reversed as markets reassess geopolitical risks and recalibrate expectations for U.S. monetary policy.
Altcoins extend declines in step with Bitcoin
The broader crypto market also sank heavily on Tuesday, mirroring Bitcoin’s slide.
Ethereum fell 5.6% to $3,008.92.
XRP slipped 4.4% to $2.15.
Solana dropped 4%, Cardano lost 5%, and Polygon retreated 3%.
Among meme-linked tokens, Dogecoin slid 4%, while $TRUMP edged 1% lower.