Bitcoin experienced a significant decline, falling as much as 2.8 percent, a move that intensified a broader market sell-off during Asian trading hours on Tuesday. This drop has erased all of its gains for the year, causing ripples across stock markets in the region. The MSCI Asia Pacific Index plummeted over 2 percent, marking its poorest performance in a month, with nearly all markets in the area reporting losses.
The cryptocurrency’s drop below the critical $90,000 threshold exacerbated investor jitters surrounding the pace of anticipated US interest rate cuts. Eyes are now turning towards key corporate earnings reports, notably from Nvidia Corp., which is set to announce its results this week. Analysts noted that Bitcoin’s decline was sufficient to convert an initial sell-off during the Asian morning into a rout.
“Bitcoin’s extended sell-off has definitely amplified the market’s risk alarm, reinforcing the sense that something deeper may be shifting under the surface,” stated Hebe Chen, an analyst at Vantage Markets in Melbourne.
Concerns have been raised that the ongoing crypto sell-off could lead to forced liquidation by retail investors, compelled to sell other assets to satisfy margin calls. This scenario could create a feedback loop where declines in cryptocurrency values force additional sell-offs in various asset classes.
Moreover, the downward trend across markets can become self-reinforcing even without leverage factors. Cryptocurrencies had surged alongside equities this year as investors shifted away from fears of a global trade conflict, focusing on innovation as a catalyst for market growth. However, such optimism seems to be dwindling.
“Momentum is a self-feeding machine,” remarked Anna Wu, a cross-asset investment strategist at Van Eck. “The weakening US sentiment, triggered by traders exiting Nvidia positions ahead of its earnings report and macroeconomic data, has spilled over into Asian markets. If we consider Bitcoin as a barometer for market sentiment, it indicates a fear level typical of a bear market.”
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Published on November 18, 2025.
