Bitcoin Rebounds After Dipping Below $90,000, Hits 7-Month Low
Bitcoin surged back above $90,000 on Tuesday after briefly falling below that key psychological level, marking its lowest point in more than seven months. The dip, which saw the leading cryptocurrency fall to $89,259 earlier in the day, was followed by a modest recovery as investors continued to reassess risk in both crypto and tech markets.
As of midday Eastern Time, Bitcoin was trading just below $90,000, down less than 1% over the past 24 hours. This follows a broader market sell-off in speculative assets, with investors shedding holdings in both crypto and AI-related tech stocks. Ether, the second-largest cryptocurrency, gained more than 0.5% to trade at $3,149, while XRP held steady at $222.
The recent volatility comes amid a broader risk-off sentiment that has gripped financial markets. Bitcoin had reached a record high above $126,000 in early October, but has since been on a steady decline. Analysts attribute the downturn to a combination of macroeconomic uncertainty, regulatory scrutiny, and a shift in investor appetite away from speculative assets.
“Bitcoin appeared to foreshadow the risk-off move, peaking in early October and falling ever since,” said Talia Kaplan, host of CNBC Crypto World. “Investors are increasingly cautious, especially as concerns about global economic growth and tighter monetary policy persist.”
Regulatory Pressure Mounts
Adding to the market uncertainty, two U.S. Senators have called for a federal investigation into the Trump family’s crypto venture, World Liberty Financial. The senators are urging the Department of Justice and Treasury Department to probe alleged token sales linked to North Korea and Russia. The move underscores growing regulatory scrutiny of crypto projects with potential ties to sanctioned countries.
“The senators are concerned about the potential for illicit finance and national security risks,” said a source familiar with the investigation. “This could have broader implications for the crypto industry, especially as regulators look to tighten oversight of token sales and cross-border transactions.”
Market Outlook
John Wu, President of Ava Labs, attributed the recent downturn in crypto markets to a combination of macroeconomic factors and sector-specific risks. “We’re seeing a flight to safety as investors rotate out of riskier assets,” Wu said. “The crypto market is still maturing, and these kinds of corrections are part of the process.”
Despite the recent pullback, some analysts remain optimistic about Bitcoin’s long-term prospects. “While the short-term outlook is uncertain, the underlying fundamentals of Bitcoin remain strong,” said one market strategist. “Institutional adoption, technological innovation, and growing global interest continue to support the asset’s value proposition.”
As markets digest the latest developments, traders will be watching for further signs of regulatory action, macroeconomic data, and shifts in investor sentiment. For now, Bitcoin’s rebound from its 7-month low offers a glimmer of hope for bulls, but the path ahead remains uncertain.