The world's largest cryptocurrency, Bitcoin, has suffered sharp losses, falling below the $90,000 level. This deepened its month-long downtrend, wiping out all of the cryptocurrency's gains for the year and dampening sentiment across the crypto asset world. Bitcoin dropped as much as 2.4% during Asian trading hours, continuing its decline from a record high of over $126,000 set in early October. Bitcoin last traded below this level in April when it was valued at $74,400, following President Donald Trump's initial tariff plan that disrupted global financial markets. This reversal comes amid growing headwinds, including renewed concerns about interest rate policy and inflated valuations in speculative markets. As traders reassess the likelihood of a U.S. Federal Reserve rate cut in December—now expectations have fallen below 50%—and stock markets have pulled back from recent highs, risk appetite has waned, making Bitcoin vulnerable to further declines. "With the probability of a Fed rate cut in December now priced in at less than 50%, crypto markets continue to fall after Bitcoin lost the key $100,000 level," said Chilian Tang, a managing partner at Monark Asset Management, according to Bloomberg News. Crypto markets were rattled on Tuesday as the largest cryptocurrency fell below $90,000, deepening its losses by more than $6,000 in 24 hours. Bitcoin plunged nearly 5% to $89,963, while Ethereum lost 6% to $2,962, Solana fell 5% to $132.28, and Ripple dropped 5.55% to $2.119.
