Bitcoin Falls Below $90,000 as Tech Sector Sell-Off Continues

Global Tech Stock Pressure Impacts Crypto Market

Bitcoin (BTC) has experienced a significant decline, falling below the $90,000 mark to reach its lowest level in two weeks. This drop is primarily attributed to the ongoing global tech stock sell-off, which has negatively impacted risk appetite in financial markets ¹

Technical and Fundamental Factors Contributing to Decline

The cryptocurrency market is facing multiple challenges. Concerns over high valuations in the tech sector have led to increased selling pressure. Additionally, aggressive spending on AI technologies has raised concerns among investors about the sustainability of current valuations. The uncertainty surrounding the US Federal Reserve's policy direction for the coming year has further contributed to the market's volatility ¹

Market Reactions and Investor Sentiment

Michael Saylor, Chairman of Strategy, has warned about potential market chaos if companies with significant crypto holdings are excluded from major indexes. This warning has added to the market's uncertainty, with analysts predicting potential outflows of up to $8.8 billion from Strategy shares if other index providers adopt similar rules ¹

Recent Price Movements and Market Trends

The price action in Bitcoin has been particularly volatile, with the cryptocurrency dropping to $87,600 during Sunday trading, marking its lowest level since December 2, 2025 ²