Bitcoin Drops to $89.5K, Reaching Its Lowest Point Since November 2024

Bitcoin dropped below $90,000 on Monday morning as macroeconomic factors and rising bond yields continued to impact crypto markets.

The leading digital asset fell to $89,500 at its lowest point in the past 24 hours, according to CoinGecko data. This marked the lowest level for Bitcoin since November 18, 2024.

The sell-off came after strong US jobs data on Friday, which caused traders to lower their expectations for Federal Reserve rate cuts.

According to the CME FedWatch tool, interest rate traders largely expect the Federal Funds rate to remain steady at 4.25% to 4.5% throughout most of the year.

Expectations for rate cuts begin to surface in later months—September, October, and December—with probabilities for a 25 basis-point reduction remaining below 42% for each of the final three Federal Open Market Committee meetings of 2025.

“Sticky inflation, robust economic data, and the Federal Reserve’s cautious approach to interest rate cuts have curbed liquidity,” said James Toledano, Chief Operating Officer at Unity Wallet. “This limits appetite for speculative assets like Bitcoin and creates short-term volatility.”

Meanwhile, US Treasury yields remained high, with the 10-year yield at 4.78%, while the Dollar Index crossed 110, reaching levels not seen since 2022.

Bitcoin later recovered to $92,000, but the broader crypto market remained under pressure.

Ethereum dropped 8%, Solana declined 6.5%, and Dogecoin fell 5%, with smaller tokens seeing double-digit losses. The total crypto market capitalization decreased by 6% over the past 24 hours.

The sell-off followed a period of strong gains for crypto markets, which were largely driven by expectations for Federal Reserve rate cuts and improving macroeconomic conditions.

However, recent data and statements from the Federal Reserve have indicated that interest rate cuts may not be on the horizon, which has caused traders to adjust their positions.

The price decline also triggered $730 million in total crypto liquidations over the past day, according to data from Coinglass.

Of the liquidations, $617 million were long positions, while short liquidations totaled $112 million. Bitcoin's market dominance climbed to 58.5% amid the recent market turbulence, which has potentially delayed the long-awaited alt season.