Cryptocurrencies took a dive on Thursday, with bitcoin falling below $90,000 amid renewed worries over AI profits affecting tech stocks.
Bitcoin was last reported down 2.5% at $90,056.24, while ether dropped 4.3% to $3,196.62, wiping out gains from the previous two days. This decline began in the U.S. trading session on Wednesday after the Federal Reserve cut interest rates, according to Reuters data.
Coindesk data revealed that U.S. bitcoin spot ETFs saw $3.4 billion in net outflows in November, negating October’s net inflows.
JPMorgan analysts, led by Kenneth Worthington, noted that worries over system leverage, talks of a new crypto winter, and poor performance compared to equities negatively impacted valuations and activities. They also reported negative flows into U.S. listed crypto products.
Coindesk data showed the total crypto market capitalization decreased by 17% to $3.04 trillion, while public crypto-related equities lost 21% of their value.
“Bitcoin and Ethereum are under renewed pressure, with BTC dropping from around $91,000 to $88,000 and ETH near $3,100 as markets prepare for a potential interest rate hike by the Bank of Japan. A stronger yen could lead to unwinding yen carry trades, temporarily affecting crypto valuations as leveraged positions reset globally. However, the BOJ’s tightening contrasts with expected Fed rate cuts in early 2026, potentially creating attractive buying opportunities for long-term investors. We anticipate BTC to revisit the $95,000-$100,000 range by early 2026, with ETH possibly climbing to $3,800 as institutional flows resume and macro conditions stabilize. Key indicators to watch include the Crypto Fear & Greed Index at extreme fear levels near 20, rising volatility metrics, and yen-driven liquidity changes globally. Disciplined risk management will be vital for investors, but these dynamics ultimately support deeper liquidity, stronger institutional participation, and continued innovation in the crypto ecosystem,” said Ignacio Aguirre, CMO at Bitget, to Khaleej Times.
Gracy Chen, CEO at Bitget, stated that Fed Chair Jerome Powell’s neutral stance sets the stage for a more mature crypto market. “We view Powell’s hint at pausing rate cuts after December as a cautious, data-driven move that supports a stable macro environment. This reduces policy uncertainty, laying the groundwork for stronger long-term crypto adoption as markets gain confidence with clearer monetary direction. A ‘neutral’ approach also encourages traders to adopt defensive positions, favoring blue-chip assets like Bitcoin while being selective with speculative altcoins,” Chen told Khaleej Times.
In the short term, liquidity flows may slow as risk assets adjust, but this cooling period often invites institutional participation. Platforms like Bitget, with robust market infrastructure and compliance-focused products, stand to gain as they become more appealing to professional investors seeking stability and scale. “Overall, Powell’s tone highlights crypto’s alignment with traditional financial cycles. As policy normalizes and institutional engagement increases, the industry is poised for more innovative products, deeper liquidity, and ecosystem growth heading into 2026,” Chen said.
