Market Overview - Bitcoin has dropped below $90,000, marking a significant decline that has erased its gains for 2025 and negatively impacted sentiment in the digital asset market [1] - The largest cryptocurrency fell by as much as 2.8% on Tuesday, continuing its decline from a record high of over $126,000 set in early October [2] Economic Factors - The decline in Bitcoin's value is occurring amid rising economic headwinds, including concerns over interest-rate policy and high valuations in speculative markets [3] - Traders are reassessing the likelihood of a Federal Reserve interest-rate cut in December, which has contributed to a souring risk appetite and left Bitcoin vulnerable to further declines [4] Market Sentiment and Trading Activity - Options traders are increasingly betting on deeper losses, with a focus on downside protection at the $85,000 and $80,000 strike prices [5] - The crypto market has struggled to find support following an early-October selloff that resulted in over $19 billion in liquidations and a loss of more than $1 trillion in market value [6] Institutional and Retail Participation - While some institutional holders have maintained their positions, retail participation and dip-buying have diminished, particularly among speculative altcoins [6] - Digital-asset treasuries, including public companies that accumulated crypto earlier this year, are facing increased strain and may need to reassess their positions as token prices fall below key accumulation levels [7]