Bitcoin Falls Below $90K as Crypto Market Faces Heavy Selloff

Bitcoin fell below the $90,000 mark on Tuesday, reaching its lowest level since mid-November as a wave of selling pressure swept through the cryptocurrency market. The decline comes amid growing economic uncertainty, shifting investor sentiment, and a series of industry setbacks that have rattled confidence in digital assets.

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The world’s largest cryptocurrency dropped as much as 7.6%, trading around $89,042 in early New York hours. Other major cryptocurrencies, including Ether, XRP, and Solana, also saw significant losses, contributing to the worst four-day slump in the market since early August. The downturn marks a stark reversal from the rally that drove crypto prices higher in late 2023. Since January, Bitcoin has fallen roughly 20%, with persistent concerns over inflation and geopolitical tensions adding to the pressure.

According to market analysts, the recent drop reflects broader financial instability fueled by shifting trade policies and uncertainty in global markets. Adrian Przelozny, CEO of Independent Reserve, noted that the decline in Bitcoin prices is closely linked to macroeconomic factors, particularly the volatility triggered by newly announced trade tariffs. The broader retreat from riskier investments has been evident across financial markets, with the Nasdaq 100 experiencing its steepest three-day drop in two months. Investors have increasingly turned to safer assets, driving bond prices higher and pushing the 10-year Treasury yield down for five consecutive sessions.

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The selloff has also extended to institutional investment products, with cryptocurrency-focused exchange-traded funds facing large outflows. The iShares Bitcoin Trust ETF, the largest spot Bitcoin fund, saw a rare withdrawal of $158 million on Monday, while investors pulled nearly $250 million from the Fidelity Wise Origin Bitcoin Fund. February has been the worst month on record for U.S.-listed spot Bitcoin ETFs, with outflows surpassing $956 million, highlighting growing caution among institutional investors. In the derivatives market, leveraged traders faced heavy losses as more than $1.34 billion in bullish crypto positions were liquidated within 24 hours, further exacerbating the downturn.

Beyond broader economic concerns, recent events within the cryptocurrency industry have added to investor anxiety. A large-scale hack targeting the crypto exchange Bybit has raised fresh security concerns, while controversy surrounding memecoins linked to public figures has further shaken confidence. The Bybit breach, considered one of the largest in the industry’s history, saw hackers—believed to be associated with North Korea—steal approximately $1.5 billion in Ether. Experts suggest the attack underscores the increasing sophistication of cybercriminals targeting digital asset platforms, with the stolen funds reportedly being laundered at a rapid pace.

Meanwhile, memecoins tied to former U.S. President Donald Trump and his wife, Melania, have performed poorly in the market. The Trump-branded token, launched before his inauguration, has plummeted more than 80% from its peak, raising concerns about the legitimacy and stability of politically affiliated digital assets. The combination of these factors has led to renewed skepticism within the crypto space.

Caroline Mauron, co-founder of Orbit Markets, pointed out that the series of negative events, from high-profile hacks to questionable token launches, has brought back concerns among market participants. With economic uncertainty persisting and the cryptocurrency industry facing increased scrutiny, investors remain cautious about the road ahead.

Also Read: Bybit Hit by $1.5 Billion Crypto Hack – The Biggest Theft in History