Bitcoin has plunged below $90,000, hitting its lowest level since mid-November as a broader cryptocurrency selloff accelerates.
The digital asset has been under pressure, reversing gains made after Donald Trump’s election win, with trade tariffs and industry setbacks weighing on investor sentiment.
The world’s largest cryptocurrency fell as much as 7.6%, trading around $89,042 at 7:51 a.m. in New York on Tuesday.
Other major digital assets, including Ether, XRP, and Solana, also suffered sharp declines. A key index tracking top cryptocurrencies is on track for its biggest four-day drop since early August.
The recent downturn marks a stark contrast to the bullish rally seen in crypto markets following Trump’s victory in early November.
Since his inauguration in January, Bitcoin has slumped by around 20%, as concerns over trade tensions, geopolitical uncertainty, and inflation have shaken investor confidence.
Market analysts point to broader macroeconomic instability as a key factor behind Bitcoin’s decline.
President Trump’s recent tariffs have triggered volatility across financial markets, prompting investors to move away from riskier assets.
The crypto selloff mirrors a wider retreat from high-risk investments, which gathered pace late last week following weak economic data.
The Nasdaq 100 has experienced its worst three-day decline in two months, while demand for safe-haven assets has surged, pushing the 10-year Treasury yield lower for five consecutive sessions.
Investor sentiment has also shifted in the exchange-traded fund (ETF) market. The iShares Bitcoin Trust ETF (IBIT), the largest spot Bitcoin fund, saw a rare outflow of $158 million on Monday.
Meanwhile, investors withdrew nearly $250 million from the Fidelity Wise Origin Bitcoin Fund, marking the third-largest withdrawal among all ETFs. February has seen record outflows from US-listed spot Bitcoin ETFs, with more than $956 million exiting the market.
In the derivatives market, more than $1.34 billion worth of bullish crypto positions were liquidated within a 24-hour period, according to data from CoinGlass.
