Bitcoin slipped below $90,000 on Tuesday, marking its lowest level in seven months and signaling a sharp decline in investor appetite for riskier assets. The world’s largest cryptocurrency has erased its 2025 gains, falling nearly 30% from its October peak of $126,000, as traders become increasingly cautious amid broader market uncertainty.

In the Asia afternoon session, Bitcoin traded down 2% at $89,953, having collapsed through key chart support around $98,000 last week.

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Macro Uncertainty and Market Mood Drag Crypto Lower

Market participants cite a combination of doubts over future U.S. interest rate cuts and wavering sentiment in broader financial markets as key drivers of the crypto selloff.

Joshua Chu, co-chair of the Hong Kong Web3 Association, explained:

“The cascading selloff is amplified by listed companies and institutions exiting their positions after piling in during the rally, compounding contagion risks across the market. When support thins and macro uncertainty rises, confidence can erode with remarkable speed.”

Several major crypto-related stocks have mirrored this trend, including Strategy (MSTR.O), miners like Riot Platforms (RIOT.O) and Mara Holdings (MARA.O), and the exchange Coinbase (COIN.O), all of which have declined alongside Bitcoin’s slump.

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Ether and Other Cryptocurrencies Also Under Pressure

The broader cryptocurrency market has faced extended volatility. Ethereum (Ether), the second-largest digital asset, has fallen nearly 40% from a peak above $4,955 in August to around $2,997 as of Tuesday, reflecting investor caution.

Analysts warn that the current downturn in crypto could serve as a leading indicator for broader markets, recalling a similar pattern earlier in 2025 when a Bitcoin drawdown presaged a wider equity selloff in April following U.S. tariff announcements.

Matthew Dibb, chief investment officer at Astronaut Capital, commented:

“All in all sentiment is pretty low in crypto and has been since the leverage wipeout of October. The next level of support is $75,000, which could hit if volatility in markets remains high.”

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Global Market Impact

Asian markets were broadly down on Tuesday, with technology shares in Japan (.N225) and South Korea (.KS11) under particular pressure, reflecting growing investor caution across multiple asset classes. Analysts say that as risk appetite shrinks, cryptocurrencies, known for their volatility, often experience more pronounced swings.

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Outlook for Bitcoin and Crypto Markets

Investors are closely watching key support levels, with $75,000 cited as a potential floor if current volatility persists. Analysts advise caution, highlighting that macroeconomic uncertainty, institutional activity, and market sentiment will continue to influence the near-term trajectory of Bitcoin and other digital assets.

While some view the pullback as a temporary correction after a record rally, others warn that broader market headwinds could exacerbate declines in both crypto and traditional financial markets.