Crypto Markets Hit Hard Amid Policy Uncertainty and Investor Nerves

The global cryptocurrency market has entered a fresh wave of turbulence, with Bitcoin slipping below the critical $90,000 threshold for the first time since April, dragged down by macroeconomic uncertainty, shifting interest rate expectations, and a broad decline in risk appetite, according to data from CoinMarketCap, the market’s total value plunged by 4.8% within 24 hours, dropping to $3.08 trillion as a coordinated sell-off swept across digital assets.

Bitcoin, the world’s largest cryptocurrency by market capitalization, fell more than 5.9% in just one day, marking its lowest price level since April 2025. As of 07:47 Türkiye saatiyle, BTC was trading at $89,623, reflecting a significant 15.3% loss over the past week.

A Repeat of Earlier Shockwaves

The last time Bitcoin experienced such a steep slide was in April 2025, when global markets were rattled by policy measures introduced by U.S. President Donald Trump. At that time, Bitcoin briefly fell to $74,400 as new tariff announcements triggered widespread volatility across financial markets. Although the current drop isn’t tied to a single event of similar scope, analysts note that today’s environment is shaped by a confluence of persistent economic pressures, prompting investors to exercise caution.

Ethereum and Altcoins Struggle to Hold Ground

Bitcoin’s slide was mirrored across the crypto market. Ethereum, the second-largest cryptocurrency, tumbled 6.44% to trade around $2,980. Many altcoins posted similar declines, reflecting a market-wide retreat driven by concerns over monetary policy, liquidity conditions, and valuation risks in adjacent asset classes.

What’s Fueling the Decline?

Analysts attribute the renewed downturn to several overlapping factors:

1. Uncertainty Surrounding Federal Reserve Policy

Investors are grappling with mixed signals from Federal Reserve officials. Conflicting commentary on inflation and growth prospects has left market participants unsure about the timing of potential rate cuts. With the Fed’s December rate-cut probability now below 50%, expectations have shifted sharply, putting pressure on risk assets.

2. Declining Risk Appetite

Tech stocks in U.S. equity markets have recently come under pressure due to high valuations, reinforcing a broader risk-off sentiment. As investors rotate toward safer assets, cryptocurrencies—traditionally viewed as high-risk—are facing intensified selling.

3. Institutional Profit-Taking and Outflows

Large-scale institutional withdrawals, combined with routine profit realization after recent rallies, have accelerated downward momentum. Analysts highlight that the inability of Bitcoin to maintain levels above the psychologically significant $100,000 mark has amplified negative sentiment.

4. Broader Macroeconomic Pressures

Higher borrowing costs continue to weigh on risk-on investments. In an environment where yields on interest-bearing assets are more appealing, cryptocurrencies may appear less attractive by comparison.

Liquidity Shock Still Lingers

The market is also contending with the aftermath of a primary liquidation wave earlier this year, when over $19 billion in leveraged positions were wiped out, erasing more than $1 trillion from global crypto valuations. While conditions have stabilized since then, the sharp erosion of market leverage has left prices more sensitive to macroeconomic developments.

Current Market Snapshot

Despite the broader downturn, the market shows pockets of short-term stabilization. At the moment:

• Bitcoin: trading around $90,742, down 1.16%

• Ethereum: hovering near $3,022, up 0.52%

This modest intraday recovery suggests that some buyers are stepping in at discounted levels. However, analysts caution that a sustained recovery will likely depend on clearer signals from central banks and renewed confidence in global markets.

The Road Ahead

Market watchers expect volatility to remain elevated as investors continue monitoring inflation data, Federal Reserve guidance, and equity market trends. Should the Fed adopt a more dovish tone in the coming weeks, cryptocurrencies could regain upward momentum. For now, however, sentiment remains fragile, and Bitcoin’s inability to reclaim the $100,000 psychological level is seen as a key pressure point weighing on the outlook.