Bitcoin Briefly Slid Below $90,000 for the First Time in 7 Months. Are We Headed for a Crypto Crash?

Core Insights - Bitcoin continues to face valuation pressures, briefly slipping below the $90,000 threshold for the first time since April, currently trading around $92,800, down approximately 26% from its all-time high of roughly $126,000 reached in October [1][2][8] - The cryptocurrency market is likely to follow Bitcoin's lead, with Bitcoin holding a market capitalization of approximately $1.86 trillion, significantly larger than Ethereum's $375.3 billion [4][5] - A return to bullish momentum for Bitcoin could positively influence the broader crypto market, while a continued decline could have the opposite effect [5] Market Dynamics - Bitcoin's price increase earlier in the year was driven by expectations of a favorable regulatory environment and anticipated interest rate cuts from the Federal Reserve, although the outlook on interest rates has become uncertain [6] - The Federal Reserve has implemented two interest rate cuts in 2025, but the possibility of another cut in December is now in question due to macroeconomic uncertainties and unfavorable data points [7]