Bitcoin Briefly Drops Below $90,000 Amid Market Turbulence

Bitcoin’s price fell below the $90,000 threshold on Monday, marking a challenging start to the week for the cryptocurrency market.

The flagship digital asset declined by 2% to $92,567.84, according to Coin Metrics, after briefly hitting a low of $89,259. This drop comes as investors continue to offload growth-oriented assets, including cryptocurrencies and tech stocks.

The broader crypto market mirrored Bitcoin’s struggles. Ethereum fell by 7% on Monday, and the CoinDesk 20 index, which tracks the performance of leading digital assets, dropped by over 5%.

Publicly traded crypto-related companies also faced losses: Coinbase shares slipped 4%, MicroStrategy declined 3%, Mara Holdings fell 4%, and Core Scientific retreated by 2%.

The sell-off in cryptocurrencies began last week, triggered by stronger-than-expected U.S. payroll numbers, which led to a spike in bond yields and boosted the dollar. Concerns about President-elect Donald Trump’s proposed tariff plans further strengthened the dollar, putting additional pressure on Bitcoin and other risk assets.

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“The need for liquidity is being driven by foreign exchange volatility, stronger year-end U.S. economic data, and a booming stock market,” explained James Davies, co-founder and CEO of Crypto Valley Exchange. “If we expect Bitcoin to act like a currency, we must accept that it can sometimes behave like one. Right now, the stronger U.S. dollar is weakening Bitcoin when measured against it.”

Despite an optimistic outlook for 2025—bolstered by the promise of a pro-crypto Congress and White House—the crypto market has faced unexpected hurdles in the new year. While Bitcoin gained an impressive 120% in 2024, it has already slipped 3% since the start of January.

Investor sentiment, which was bullish heading into the year, has been dampened by macroeconomic concerns. Analysts now warn that the first quarter of 2025 could bring more turbulence to the cryptocurrency space than previously anticipated.