Bitcoin has fallen below the $90,000 mark for the first time since November, as the cryptocurrency market grapples with macroeconomic uncertainty, regulatory developments, and the aftermath of a major hack.
The decline comes amid broader concerns over Federal Reserve policies, potential stagflation, and shifting investor sentiment toward Bitcoin exchange-traded funds (ETFs).
The recent downturn in Bitcoin’s price—falling nearly 10% in 24 hours—has been linked to several key events:
- Bybit Hack: A $1.4 billion hack of Dubai-based crypto exchange Bybit has contributed to negative sentiment in the market, raising concerns over security risks and investor confidence.
- ETF Outflows: Analysts warn that significant withdrawals from Bitcoin spot ETFs could accelerate the downturn. Some predict that Bitcoin could fall to $80,000 before a potential rebound.
- Federal Reserve Policy Uncertainty: The Fed’s reluctance to cut interest rates as quickly as expected has dampened enthusiasm for risk assets, including cryptocurrencies. A key inflation report this week could influence the Fed’s stance, further impacting Bitcoin’s price.
- Market Sentiment: The Crypto Fear & Greed Index has entered “extreme fear” territory, reflecting heightened caution among investors.
The decline has affected the wider cryptocurrency sector, with Ethereum, Solana, and Ripple’s XRP all dropping between 10% and 15%. Analysts suggest that Bitcoin’s price movement is closely tied to macroeconomic trends and stock market performance, with equities also experiencing volatility.
Forbes, Market Watch, and CNBC contributed to this report.
