Bitcoin tumbled below $90,000 on Tuesday, hitting its lowest level since mid-November, as the post-election rally fueled by Donald Trump’s return to the White House reversed under pressure from his trade tariffs and mounting industry troubles. The cryptocurrency plunged as much as 7.6%, trading around $88,800 in New York at 9:36 a.m. Other major digital assets, including Ether, XRP, and Solana, also saw sharp declines, with an index tracking top tokens on pace for its largest four-day drop since early August.
ALSO READBitcoin slides under USD 90,000, erasing some of gains made under Trump
The latest slump marks a stark shift from the risk-on sentiment that had pushed Bitcoin higher following Trump’s election victory in November. Since his inauguration in January, Bitcoin has fallen nearly 20% amid growing investor unease over his aggressive trade policies and persistent inflation concerns.
“The fall in Bitcoin prices is likely related to broader macro uncertainty that has hit most financial markets in the last couple of days and is linked to the various tariffs being announced by President Trump,” said Adrian Przelozny, CEO of crypto exchange Independent Reserve”, according to fortune crypto.
Market Turmoil and ETF Outflows
The selloff in Bitcoin coincides with a wider retreat from risk assets, which accelerated late last week when disappointing economic data triggered a three-day slump in the Nasdaq 100. As a result, investors have been shifting into safer assets like bonds, with the 10-year Treasury yield declining for five straight sessions.
Meanwhile, exchange-traded funds (ETFs) that had fueled Bitcoin’s post-election surge are now seeing significant withdrawals. The iShares Bitcoin Trust ETF (IBIT), the largest spot Bitcoin fund, recorded a rare outflow of $158 million on Monday, while investors pulled nearly $250 million from the Fidelity Wise Origin Bitcoin Fund. February has seen a record $956 million exit from US-listed spot Bitcoin ETFs, according to Bloomberg Intelligence data.
In derivatives markets, more than $1.34 billion worth of bullish crypto positions were liquidated over a 24-hour period, according to CoinGlass, further amplifying the selloff.
Industry-Specific Setbacks Add Pressure
Bitcoin’s decline has been exacerbated by a series of setbacks within the crypto industry, including a record-breaking hack on the Bybit exchange and a scandal involving Argentina’s President Javier Milei and memecoins.
Hackers, reportedly linked to North Korea, stole approximately $1.5 billion worth of Ether from Bybit last week and have begun laundering the funds.
» Read More
