The cryptocurrency market is grappling with widespread unease today as Bitcoin, the sector’s bellwether asset, tumbled below the $90,000 mark for the first time in seven months.
The plunge, which saw the digital currency shed over 5% in the past 24 hours, has effectively erased all gains recorded throughout 2025, leaving investors staring at a year-to-date deficit and signaling the onset of a deeper bearish phase.
As of midday in Singapore, Bitcoin was hovering around $90,391, a sharp drop from its October zenith above $126,000. The latest skid represents a nearly 30% retreat from that high-water mark, with the broader crypto ecosystem mirroring the downturn, contracting by more than 2% over the same period and extending a weekly slide of 12%.
Altcoins like Ethereum and Solana followed suit, amplifying the sense of panic rippling through trading floors and decentralized exchanges worldwide. The catalyst for this volatility appears rooted in a confluence of macroeconomic pressures and fading optimism around regulatory tailwinds.
Tech giants like Nvidia, whose AI-driven rally had buoyed risk assets, also faltered today, dragging major US indices lower and underscoring the interconnected fragility of high-growth sectors. Traders, sensing further downside, are ramping up bets on an accelerated descent, with open interest in short positions surging as some speculate on a freefall toward $80,000. ‘The momentum has shifted decisively,’ noted one anonymous derivatives trader in a post on the Binance platform, capturing the sentiment among a community now bracing for prolonged consolidation.
Market data from Bloomberg indicates Bitcoin has not only breached its year-end 2024 close of $93,714 but has also undercut key support levels that once seemed impregnable, prompting liquidations exceeding $500 million across major platforms in the last day alone. This fall marks a sobering pivot for an industry that had basked in relative stability following the 2024 halving event and institutional inflows via spot ETFs.
Total crypto market capitalization, which peaked at over $3 trillion in late summer, now languishes below $2.5 trillion, evoking memories of past cycles where euphoria gave way to capitulation.
Analysts point to waning retail participation and heightened scrutiny from global regulators such as the European Union’s impending MiCA framework updates as additional drags on sentiment.
Yet, amid the jitters, glimmers of resilience persist. On-chain metrics reveal steady accumulation by long-term holders, and whispers of potential central bank explorations into digital assets could yet provide a floor.
Earlier this year, Bitcoin surged on waves of enthusiasm tied to pro-crypto rhetoric from US political figures, including Donald Trump’s campaign promises of a more innovation-friendly environment.
For now, though, the market’s mood is one of guarded caution, with eyes fixed on upcoming US economic data releases that could either staunch the bleeding or accelerate the rout.