Summary
Bitcoin's value dropped below $90,000 for the first time in seven months, erasing all gains from 2025. The decline is linked to waning investor interest and uncertainties about future U.S. interest rate cuts. Cryptocurrency markets lost significant value recently, impacting companies holding large crypto investments.
Key Facts
- Bitcoin fell under $90,000, erasing gains for the year 2025.
- It rebounded slightly as U.S. markets opened but remained about 30% below an October peak of $126,000.
- The overall value of cryptocurrencies dropped by $1.2 trillion in the past six weeks.
- Concerns include potential delays in U.S. Federal Reserve interest rate cuts and a risk-averse market sentiment.
- Companies and institutions are selling off positions, increasing market risks.
- Recent outflow includes exchange-traded funds (ETFs) as retail investors react to last month's market volatility.
- The value of crypto investments by public companies is at risk, with some being "underwater" if Bitcoin drops further.
- Ethereum, another major cryptocurrency, also lost significant value, down nearly 40% from a recent high.
