Bitcoin Below Breakpoint: Buyers Back Off as Big-Scale Bloodbath Batters Market
For the first time in seven months, Bitcoin has fallen below 90,000 dollars—signaling a rapidly declining appetite for risk in global markets, according to a Reuters report.
On Tuesday, during early European trading, the cryptocurrency slipped 1 percent to 90,907 dollars, though at one point it dropped as low as 89,286 dollars. Compared to October’s peak of 126,000 dollars, Bitcoin is now down nearly 30 percent, wiping out all gains for the year.
Over the past six weeks, roughly 1.2 trillion dollars in market value has vanished from the crypto sector. Analysts say uncertainty over how quickly the U.S. will cut interest rates, combined with recent turbulence in markets that had been rising for a long time, has collectively weakened investors’ risk-taking sentiment.
Joshua Chu, vice-chairman of the Hong Kong Web3 Association, said that major companies and institutions—after making massive investments during the rally—are now reducing their positions, adding pressure to the market. With supportive buying drying up, panic is spreading swiftly. At the same time, a large number of retail investors, hurt by October’s sudden crash, are now reluctant to re-enter the market.
Meanwhile, the shares of companies and miners that strategically hold crypto are also falling. Concerns about overvaluation are rising in Europe’s tech sector as well. Ether remains under heavy pressure and has dropped nearly 40 percent from its August highs. Analysts note that since October’s leverage collapse, overall sentiment in the crypto market has remained extremely fragile.
DBTech/BMT/OR
