Bitcoin Slips Below $90,000 as Year-End Caution Weighs on Crypto Markets
Written by Bosy Abdelkader
Bitcoin, the world’s largest cryptocurrency, fell by around 2.5% on Tuesday after failing to hold gains above the $90,000 level, amid weak trading volumes and declining institutional demand as the year draws to a close.
According to data from CoinMarketCap, Bitcoin dropped 2.54% to $87,358.6. The cryptocurrency had briefly surpassed the $90,000 mark during Monday’s session before quickly retreating, signaling strong technical resistance at that level.
Other major cryptocurrencies also recorded losses. Ethereum declined by 3% to $2,949.92, while Ripple (XRP) fell 1.6% to $1.86. Solana dropped about 3% as well.
Meme coins were not spared, with Dogecoin and the $TRUMP token both falling roughly 3%. Ongoing outflows from U.S.-listed Bitcoin exchange-traded funds (ETFs) have continued to pressure prices, reflecting softer institutional demand that had previously helped drive Bitcoin to record highs. Broader profit-taking and reduced risk appetite also weighed on the market.
Low liquidity during the holiday period has amplified price swings, keeping Bitcoin largely confined below the $90,000 threshold despite occasional intraday rebounds.
Investors remain cautious ahead of the release of the U.S. Federal Reserve’s December meeting minutes later on Tuesday. The minutes are expected to shed light on divisions among policymakers regarding the outlook for interest rates, following the Fed’s recent rate cut.
While expectations of additional rate cuts in 2026 could support risk assets, including cryptocurrencies, uncertainty persists over the pace and scale of future monetary easing.
