Bitcoin, the world’s largest and most valuable cryptocurrency, has plunged below $92,000 (€79,000), wiping out all its gains for the year. The digital currency lost more than a quarter of its value since hitting a record high of over $126,000 (€108,700) in late October.
Within 24 hours, Bitcoin briefly traded as low as $89,471 (€77,210), a nearly 30 percent decline from its October peak, before seeing a modest recovery in early trading on Tuesday. Analysts describe the fall as indicative of a bear market, a phase in which asset prices drop sharply.
“Bitcoin is extending losses, trading at around $90,000, shedding about 2 percent, fuelled by concerns about overvaluations in the tech sector and broader risk-off sentiment that is causing a ripple effect across global markets,” said Victoria Scholar, head of investment at Interactive Investor. She noted that the cryptocurrency’s decline has erased all its gains for 2025, leaving it below January’s opening levels.
Scholar attributed the drop to fears of an AI bubble and investor caution over the market’s heavy reliance on a small number of technology companies. These concerns have prompted a retreat from speculative assets, including cryptocurrencies.
The decline comes despite a U.S. administration seen as relatively crypto-friendly, a Securities and Exchange Commission chair perceived as less enforcement-focused, and recent legislation supporting stablecoins, which are cryptocurrencies tied to traditional currencies.
Bitcoin operates on a decentralized blockchain, a digital ledger maintained across thousands of computers or nodes. Transactions are grouped into blocks and verified through cryptography before being permanently added to the chain. This system is designed to be transparent and difficult to manipulate, but it also makes Bitcoin highly sensitive to market sentiment. Investors often sell at the first sign of volatility to reduce exposure.
“There’s a general sense of nervousness that has captured the market mood lately, and Bitcoin appears to be in the firing line,” Scholar said. “Riskier non-yielding assets like Bitcoin look less attractive in a higher interest rate environment.”
Some proponents of the cryptocurrency view the price drop positively. Billionaire investor Michael Saylor said the volatility helps remove investors who lack long-term commitment. “Volatility is a gift to the faithful. It scares away the tourist, it scares away the lazy, it scares away the people that are already conventionally rich that have all the money,” he said.
Saylor’s Strategy Inc., formerly MicroStrategy, recently purchased 8,178 additional Bitcoin coins between November 10 and 16 at an average price of around $102,171 (€88,000) each, spending approximately $835.6 million (€721.15 million) in total. Die-hard Bitcoin supporters argue that committed investors who navigate these fluctuations are best positioned to benefit from the market’s ups and downs.
