Core Viewpoint - The decline of Bitcoin below $90,000 has intensified a selloff across global financial markets, raising concerns about leveraged investors triggering further selling pressure [1][4]. Group 1: Market Reactions - Bitcoin experienced a drop of up to 2.8% before recovering slightly, contributing to a broader decline in equity benchmarks in Europe and Asia, which fell more than 1% [1]. - US equity futures indicated another day of losses, reflecting the negative sentiment in the market [1]. - The Nikkei 225 Stock Average in Japan fell by 3.2%, with 10-year Japanese government bond yields reaching their highest since mid-2008 [6][7]. Group 2: Investor Sentiment - Portfolio manager Joseph Zhang noted that the declines across various asset classes are partially due to the spillover effects from the cryptocurrency market [2]. - There is a concern that the crypto selloff could lead retail investors to sell off other assets to meet margin calls, potentially creating a feedback loop of selling pressure [2]. - Analyst Hebe Chen indicated that the extended selloff in Bitcoin has heightened market risk alarms, suggesting deeper underlying issues [5]. Group 3: Future Outlook - Nick Twidale, chief market analyst, mentioned that further downside risk for cryptocurrencies could occur as portfolio adjustments are made to cover losses in equities [3]. - Zhang from Fidelity International suggested that once the selling pressure subsides, a market rebound could be possible [5].