Bitcoin Drops Below $90,000 for First Time in Seven Months

SINGAPORE, Nov 18 (Reuters) – Bitcoin fell below $90,000 late Monday, marking its first dip beneath this threshold in seven months. The decline signifies a worrying shift in investor sentiment, as the world’s most valuable cryptocurrency has erased all its gains for 2025.

Bitcoin’s price dropped as low as $89,426 on Monday night and continued to hover just below $90,000, a decrease of more than 5.3% within the last 24 hours. This drop follows a record high of over $126,000 reached in early October.

The latest selloff coincides with growing fears about the U.S. economy, particularly concerns that the Federal Reserve may not cut interest rates further. The atmosphere in broader financial markets, which has faltered post-rally, is adding to the downward pressure on cryptocurrencies.

Joshua Chu, co-chair of the Hong Kong Web3 Association, noted, “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.” He remarked that dwindling support coupled with rising macro uncertainty can rapidly erode confidence.

In addition to Bitcoin, other key cryptocurrencies have also fallen. Ether, the second most valuable cryptocurrency by market cap, dipped below $3,000, down more than 5.6% within 24 hours. Other notable tokens, including XRP and Binance’s BNB, reported declines of 3.9% and 3%, respectively, during the same period.

This severe downturn began over the weekend when Bitcoin slid under $93,714, dropping below levels seen at the end of last year. The initial surge to a record high of $126,251 was fueled by optimism surrounding the Trump administration’s favorable view on cryptocurrencies.

However, market sentiment shifted dramatically after the announcement of tariff policies by President Trump, causing global market shocks. By Monday, the selloff deepened, forcing traders to rush for hedges against further losses.

Data from Coinbase-owned Deribit shows traders have purchased more than $740 million in bearish contracts set to expire later this month, highlighting a sense of caution and pessimism in the market.

Matthew Dibb, chief investment officer at Astronaut Capital, stated, “All in all, sentiment is pretty low in crypto and has been since the leverage wipeout of October. The next level of support is $75k, which could hit if volatility in markets remains high.” The decline reflects the inherent volatility in the cryptocurrency market, underscoring the complex relationship between digital assets and broader economic factors.