Bitcoin Edges Up After Falling Below $90,000 as Crypto Market Loses $1.2 Trillion
Bitcoin traded slightly higher on Tuesday after hitting a seven-month low below $90,000, as weak risk appetite and concerns over U.S. interest rates continued to weigh on the crypto market.
The cryptocurrency, which has wiped out all gains made earlier in the year, was last up 1.9% at $93,532 after dropping to $89,286. It remains 26% below its October peak above $126,000.
Analysts say doubts about future U.S. rate cuts and a broader pullback across financial markets have deepened selling pressure. Over the past six weeks, more than $1.2 trillion has been wiped off the value of global cryptocurrencies, according to CoinGecko.
Market players say the selloff has accelerated as institutions that bought heavily during the rally begin unwinding positions, contributing to contagion across the sector. Outflows from U.S. spot bitcoin ETFs have also intensified, with Morningstar data showing $3.7 billion exiting the funds since Oct. 10.
Bitcoin-linked companies such as Coinbase, Marathon Holdings and Strategy have also swung sharply with market sentiment.
Standard Chartered warned that a drop below $90,000 could push half of publicly listed companies holding bitcoin into losses. Collectively, listed firms hold 4% of all bitcoin in circulation.
Despite the downturn, Strategy founder Michael Saylor said the company added 8,178 bitcoin on Monday, bringing its total to 649,870 tokens.
Ether has also been under pressure, losing nearly 40% of its value from its August peak.
