Bitcoin edges into yearly losses as volatility rises
Profit-taking by long-term holders and macroeconomic pressure have pushed Bitcoin below $90,000, erasing its gains from the past eleven months.
Bitcoin has slipped into negative territory for the year after a sharp retreat that pushed the price below $90,000 for the first time in seven months. The cryptocurrency has now fallen more than 28% from its peak above $126,000, erasing over $600 billion in market value.
Investors have been rotating out of speculative assets, with concerns around potential Federal Reserve decisions adding to the risk-off sentiment.
Market analysts note that long-term holders have been taking profits following the extraordinary rally that carried Bitcoin to new records in October. Uncertainty around monetary policy, tightening liquidity, and broader macroeconomic pressures have fuelled the downturn.
The impact of the October flash crash, triggered by renewed US-China trade tensions, continues to weigh heavily as thinner order books leave Bitcoin more vulnerable to abrupt price swings.
Bitcoin had rallied strongly throughout the year, supported by optimism over pro-crypto policies under President Donald Trump and the rollout of new digital-asset regulations. Yet the cryptocurrency has now surrendered its gains, underperforming major benchmarks such as the S&P 500 and gold.
Analysts say the market is approaching a pivotal moment, with some fearing a deeper reset while others view the current consolidation as an opportunity for strategic accumulation.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
