Bitcoin crash! Cryptocurrency dives below $90,000 for first time in 7 months; $1.2 trillion wiped out in market rout

Bitcoin slipped below the $90,000 mark for the first time in seven months on Tuesday, signalling a sharp retreat in risk appetite across global markets. The world’s biggest cryptocurrency, which touched a record high above $126,000 in October, has now surrendered all its gains for 2025 and is down nearly 30 per cent from its recent peak. It was last trading at $92,891 after hitting an intraday low of $89,286.75, reported Reuters.Data from CoinGecko shows the broader digital asset universe has seen about $1.2 trillion in market value erased over the past six weeks. Traders attribute the slide to uncertainty over future US interest rate cuts and a fragile mood across financial markets after an extended rally.“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,” said Joshua Chu, co-chair of the Hong Kong Web3 Association. He warned that “when support thins and macro uncertainty rises, confidence can erode with remarkable speed.”Market specialists said selling pressure has been persistent but is hitting at a time when the buy side looks especially weak. Joseph Edwards of Enigma Securities said many small investors have stayed away since the October crash that triggered liquidations worth $19 billion across leveraged positions.Shares of major crypto-linked firms such as Strategy, Coinbase, Riot Platforms and Mara Holdings have also fallen amid the broader risk-off tone. Standard Chartered Bank has estimated that a further decline below $90,000 could result in about half of publicly listed companies’ bitcoin holdings turning “underwater”, meaning their holdings would be valued below acquisition cost.The corporate sector collectively holds around 4 per cent of all bitcoin and 3.1 per cent of ether in circulation, according to the bank. Strategy, the largest listed holder, has continued to expand its stash. Founder Michael Saylor said the company purchased 8,178 bitcoin on Monday, taking its total to 649,870 tokens acquired at an average price of roughly $74,433 per coin.Ether, the second-largest cryptocurrency, has also been under sustained pressure and is now down nearly 40 per cent from its August high above $4,955.“All in all, sentiment is pretty low in crypto and has been since the leverage wipeout of October,” said Matthew Dibb, chief investment officer at Astronaut Capital.