Bitcoin Falls Below $90,000 For First Time In Seven Months

Bitcoin extended its steep decline on Tuesday, dropping below $90,000 for the first time in seven months, as bearish sentiment gripped the cryptocurrency market. The slide marks a dramatic reversal from the record highs seen just weeks ago, erasing all gains for the year as reported by Bloomberg.

The downturn began over the weekend when Bitcoin fell under $93,714 on Sunday, slipping beneath last year's closing level. The token had surged to an all-time high of $126,251 on October 6, fueled by optimism over the Trump administration's pro-crypto stance. However, the rally unraveled after unexpected tariff-related comments from President Trump triggered global market jitters, Bloomberg said.

By Monday, the selloff deepened as Bitcoin breached $91,500, with traders rushing to hedge against further losses. Options activity reflected growing pessimism, with heavy demand for downside protection at $90,000, $85,000, and $80,000 strikes. Protective contracts expiring later this month saw particularly strong interest, according to data from Coinbase-owned Deribit, Bloomberg reported.

In fact, traders have snapped up more than $740 million worth of bearish contracts set to expire in late November, far outpacing bullish bets. This surge in hedging underscores the conviction among market participants that the slide is far from over, as deep-pocketed buyers retreat from the market, Bloomberg said.

The sharp reversal comes just weeks after Bitcoin's meteoric rise, highlighting the volatility that continues to define the cryptocurrency space. Analysts warn that if the current momentum persists, the token could test even lower levels in the coming days, as per Bloomberg.

In early November, Bitcoin plunged to around $107,000, nearly 15% from its all-time high levels, dragging broader crypto markets lower and souring sentiment among traders and investors. The slide was tied to the Federal Reserve's cautious stance following its interest-rate decision in the last week of October

While the Fed cut rates and signaled plans to end quantitative tightening by December, Fed Chair Jerome Powell made it clear that another cut in December was not guaranteed.

That selling has created a psychological overhang: A market crowded with investors who are too deep in the red to buy more, but not yet ready to cut their losses, said Bloomberg.

A sentiment indec compiled by data-analytics platform CoinMarketCap — tracking price momentum, volatility, derivatives, and more — indicates crypto participants are mired in a state of “extreme fear," Bloomberg said.