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The price of Bitcoin, the pioneering decentralized digital currency, has dropped below $90,000, falling below its level from a year ago, as other leading cryptocurrencies also experience significant declines.
As of 12:27 a.m. Beijing time, Bitcoin has decreased by 5.4% in the past 24 hours, currently valued at approximately $89,943, according to Investing.com data. A year prior, it was priced at around $90,450. Throughout the year, Bitcoin’s value has fluctuated between highs of roughly $124,310 and lows near $75,005. Since reaching a record peak in October, Bitcoin’s value has declined sharply, erasing around $600 billion of its market capitalization from its all-time high.
Other key tokens have also weakened, with Ethereum dropping 6.4% to around $2,980, despite hitting over $4,830 in August.
Market analysts attribute this downturn to multiple combined pressures stemming from macroeconomic expectations, funding conditions, and trading sentiment. Industry insiders note that macro outlooks have shown inconsistent signals, with market uncertainty about the Federal Reserve’s upcoming policy decisions. Economic data disruptions have caused brief surges in interest rate cut expectations, only to retreat quickly, leading to increased volatility.
Risk-sensitive assets such as U.S. stocks and cryptocurrencies are under pressure, with market participants cautious amid fluctuating forecasts. Additionally, Bitcoin spot ETFs, which performed well earlier this year, have experienced persistent net outflows since September. Some longstanding institutional investors have opted to take profits amidst tightening liquidity conditions. This trend of redemption has significantly diminished one of the market’s primary sources of external capital.
Trading vulnerabilities are increasingly evident, especially following the massive liquidation event on October 11, which continues to influence market confidence. The presence of high leverage and volatile sentiment makes the market more prone to liquidity shocks. Over the past day, more than 230,000 trading accounts have been liquidated, mainly involving Bitcoin contracts, totaling over $1 billion in losses, according to Coinglass data.
Looking at the medium to long term, consolidation and regulatory compliance are seen as crucial for Bitcoin to strengthen its mainstream presence. Despite current challenges, its role as a hedge against inflation, currency devaluation, and geopolitical risks remains intact. Still, it will take time for Bitcoin to mature fully as an asset class. Key factors influencing future market direction include the advancement of exchange-traded fund options, clarification of global regulatory frameworks, and sustained growth in on-chain finance, cross-border payments, and actual demand, experts note.
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