Bitcoin’s (BTC) price has now fallen below $90,000 U.S. and hit its lowest level in seven months as the slump in cryptocurrencies deepens.
The largest cryptocurrency by market capitalization has fallen about 5% in the past 24 hours and has now declined in seven of the past eight days.
Bitcoin is down 30% from an all-time high of $126,000 U.S. reached in early October, and has erased all of its gains this year, meaning it is now trading in the red for 2025.
The slide lower in BTC coincides with ongoing declines in other prominent cryptocurrencies, including Ethereum (ETH), Solana (SOL), and XRP (XRP).
Ethereum’s price is struggling to stay above $3,000 U.S., having dropped 40% from an all-time high of just under $5,000 U.S. reached in August of this year.
The accelerating decline in crypto is occurring alongside a slide in technology stocks, particularly those tied to the artificial intelligence (A.I.) trade.
Investors appear to be increasingly concerned about the high valuations of A.I. stocks such as Nvidia (NVDA) and Alphabet (GOOGL), leading the market lower.
Analysts also say that digital assets such as Bitcoin are suffering as investors worry that the U.S. Federal Reserve won’t lower interest rates in December as expected.
Futures markets are now pricing in a 46% chance that the U.S. central bank lowers rates by 25 basis points on Dec. 10.
That’s down from 67% a week ago and greater than 90% on Halloween, according to the CME Fed Watch tool.
Markets for both crypto and stocks are now bracing for two big events in coming days, Nvidia’s third-quarter financial results and the September jobs report.
The U.S. jobs report had been delayed due to the government shutdown in Washington, D.C.
Analysts say a decent labour market report would strengthen the case for the Federal Reserve to hold interest rates steady, likely sending crypto prices down even more in coming days.
