Bitcoin tumbles to seven-month low

Bitcoin tumbled more than 5% to a seven‑month low as mounting macroeconomic uncertainty and shifting expectations about U.S. monetary policy weighed on risk assets. The largest cryptocurrency traded near $90,100, briefly dipping under $90,000, marking its weakest level since April. CoinMarketCap data showed the total crypto market value slid about 4.5% in 24 hours to roughly $3.09 trillion. Bitcoin’s market capitalization fell about 5.2% to $1.94 trillion while daily trading volume jumped roughly 46% to $106 billion; weekly losses extended to about 15.3%.

Ethereum also declined, slipping about 5.4% to near $3,013. Analysts attributed the sell‑off to a mix of macro uncertainty, mixed signals from Federal Reserve officials about the timing of rate cuts, profit‑taking and a longer‑term reassessment of market valuations. The reassessment followed stronger‑than‑expected U.S. economic data that pushed Treasury yields higher and reduced the likelihood of imminent Fed easing. CME FedWatch showed traders lowered the probability of a 25‑basis‑point cut in December to the mid‑40% range from roughly 64% the prior week, intensifying pressure on liquidity‑sensitive assets.

Market participants noted the psychological impact of Bitcoin trading below the $100,000 threshold after recent attempts to regain ground faltered. The crypto market had already suffered a major liquidation event early last month that wiped more than $19 billion from leveraged positions and erased over $1 trillion in market value across tokens, leaving vulnerability to renewed outflows. Observers warned that continued strong economic data or firmer central‑bank rhetoric could trigger further volatility, as tighter financial conditions would dampen demand for speculative assets.

Geopolitical strains, divergent central‑bank stances globally and fluctuating inflation expectations added to risk‑off sentiment, driving investors toward perceived safe havens such as the dollar and government bonds. Although proponents present Bitcoin as a hedge against inflation or systemic risk, recent price action underscores its correlation with broader risk assets and sensitivity to interest‑rate outlooks. Traders cautioned that a sustained recovery in crypto prices will hinge on clearer signals of easing liquidity pressures or a return of risk appetite; absent that, further corrections remain a plausible near‑term scenario as market participants monitor incoming economic releases and central‑bank commentary for cues on policy direction.