Bitcoin Below $90,000: Risk Appetite Decreases

Singapore - Bitcoin fell below the $90,000 level for the first time in seven months on Tuesday, showing the latest signs of reduced risk appetite in financial markets. The cryptocurrency erased $2025 gains, dropping nearly 30% since its peak above $126,000, and fell to $89,953 with a 2% decline in the Asian afternoon.

Market participants indicate that uncertainties regarding future U.S. interest rate cuts and fluctuations following a prolonged rally have pulled down cryptocurrencies. Joshua Chu, co-chair of the Hong Kong Web3 Association, stated, "The waves of decline accelerated as public companies and institutions that took positions during the rally exited, increasing contagion risks in the markets."

Cryptocurrency holders, miners, and exchange platforms have declined due to the falling market atmosphere. On Tuesday, markets across Asia dropped; especially technology stocks faced specific pressure in Japan and South Korea. The Ether cryptocurrency has also been under pressure for months, trading at $2,997 on Tuesday with nearly a 40% loss from its peak above $4,955 in August.

The year-to-date Bitcoin losses had previously signaled a broader sell-off affecting stocks following the announcement of U.S. tariffs in April. The decline in cryptocurrencies could raise some concerns, increasing its impact on broader markets. Matthew Dibb, chief investor at Astronaut Capital, said, "The overall sentiment in the crypto markets is quite low and has been ongoing since the deleveraging in October." "The support level is $75,000; if market volatility remains high, this level could be seen."