Bitcoin wipes out 2025 gains as crypto sell-off accelerates

Bitcoin fell below $90,000 on Tuesday, marking its lowest level in seven months, as risk appetite in financial markets continues to fade. The cryptocurrency has now wiped out its 2025 gains, dropping nearly 30 percent from its October peak above $126,000.

The sudden decline comes after Bitcoin slipped through key support around $98,000 last week, falling 2 percent to $89,953 in Asia afternoon trading. Analysts say investor caution over future U.S. interest rate cuts and shaky broader markets is weighing heavily on crypto.

Joshua Chu, co-chair of the Hong Kong Web3 Association, said the sell-off is being magnified by institutional investors and publicly listed companies exiting positions after a strong rally. “When support thins and uncertainty rises, confidence can evaporate very quickly,” he noted.

Crypto-focused stocks have mirrored the downward trend. Shares of Strategy (MSTR.O), miners Riot Platforms (RIOT.O) and Mara Holdings (MARA.O), as well as the exchange Coinbase (COIN.O), all suffered losses as the market mood soured.

Other cryptocurrencies are also under pressure. Ether, the second-largest crypto, has fallen nearly 40 percent since its August high of $4,955 and was trading 1 percent lower at $2,997 on Tuesday.

The recent Bitcoin drop comes amid concerns that cryptocurrency movements could be an early warning for broader market swings. A decline in Bitcoin earlier this year foreshadowed a sell-off in equities after U.S. tariff announcements in April.

Matthew Dibb, chief investment officer at Astronaut Capital, said sentiment in crypto has remained weak since October’s leverage wipeout. “Overall, confidence in the market is still fragile,” he said.

Bitcoin’s last 48 hours

Over the past two days, Bitcoin has seen a dramatic 3.5 to 5.5 percent decline. It started Monday around $95,000 to $96,000 before a sharp evening sell-off pushed it briefly below $90,000. The sudden drop highlights the volatility that has gripped digital assets, turning a period of relative stability into a steep correction.

Investors will be watching closely to see whether Bitcoin can recover, or if the recent slide signals continued weakness in crypto markets.