Bitcoin price today: tumbles below $90k as Fed cut doubts spark risk-off mood
Investing.com-- Bitcoin dropped below $90,000 on Tuesday for the first time in nearly seven months, as uncertainty over the U.S. Federal Reserve’s interest rate path and caution around delayed economic data dampened demand for riskier assets.
The world’s largest cryptocurrency last traded 5.4% lower at $90,091.5 as of 00:22 ET (05:22 GMT).
Bitcoin dropped to as low as $89,471.4 in the last 24 hours, pulling it about 30% below its late-October peak above $126,000.
The decline accelerated after Bitcoin failed to hold support around $94,000 and triggered a technical “death cross” on short-term versus long-term moving averages.
Investors have grown increasingly doubtful that the Fed will deliver a rate cut at its December meeting. Fed officials, including Chair Jerome Powell, have signalled reluctance to ease further, leaving investors unsure of the central bank’s next move.
Markets were also cautious because policymakers still lack sufficient data after weeks of delayed releases caused by the recent U.S. government shutdown.
The data backlog will begin to clear this week, with the September non-farm payrolls report scheduled for release on Thursday.
Weaker flows into spot Bitcoin exchange-traded funds have also contributed to the downturn, with institutional buyers stepping back as volatility rises.
Crypto-exposed equities and mining stocks have likewise fallen sharply, amplifying risk aversion across the digital-asset complex.
The move also follows a series of heavy liquidation waves across crypto derivatives markets, where billions of dollars in leveraged positions were unwound.
Data from major analytics firms showed that earlier this month, more than $19 billion in crypto positions were wiped out in a single 24-hour period, triggering forced selling.
Bitcoin last traded below $90,000 in late April. Its return to those levels underscores how rapidly investor confidence has deteriorated as markets reassess geopolitical risks and the timing of U.S. rate cuts.
Most altcoins also saw extended sharp losses on Friday amid broader risk aversion.
World no.2 crypto Ethereum dropped 5.6% to $3,008.92.
World no. 3 crypto XRP fell 4.4% to $2.15.
Solana declined 4%, while Cardano slipped 5% and Polygon lost 3%.
Among meme tokens, Dogecoin fell 4%, while $TRUMP edged 1% lower.
