The world’s largest cryptocurrency, Bitcoin, took a sharp tumble on Tuesday, sliding below the $90,000 mark for the first time in more than seven months, raising fresh questions about whether the crypto rally is over.
Investors who had been riding the rise in Bitcoin, which peaked above $126,000 in October, saw their gains erased, as the coin weakened to around $89,953. Market watchers noted that a key support level near $98,000 gave way last week, triggering further selling.
The downturn is not limited to Bitcoin. The broader crypto market has shed more than a trillion dollars in value in recent weeks. According to one report, “more than $1 trillion has been wiped from the crypto market.” One recent feature noted that the drop reflected a sudden shift in sentiment rather than a long-term change in digital-asset adoption.
Macro factors appear to be weighing heavily. Diminished expectations of imminent U.S. interest-rate cuts and a general flight from riskier assets have dampened appetite for crypto. Some analysts also tie the sell-off to institutions and companies that piled into crypto during the run-up, now trimming exposure.
In Pakistan and beyond, retail investors should take note: the slide in Bitcoin could potentially mark the beginning of a bigger correction.
So, is the crypto rally really over? While some market players remain bullish on the long-term case for digital assets, the short-term technical signs look troubling. The next major support level cited by analysts is around $75,000. Unless sentiment improves or fresh catalysts emerge, Bitcoin and its peers may face a steeper slide.
For now, the downturn underlines how quickly the rally mood that powered crypto this year can evaporate, and serves as a reminder that the keyword “crypto rally” may now be in question.
