Bitcoin fell below 90,000 dollars on Tuesday for the first time in nearly seven months before recovering slightly, as uncertainty over the Federal Reserve’s interest-rate path and caution tied to delayed U.S. economic data reduced demand for high-risk assets.

The world’s largest cryptocurrency was down 2.6% at 92,482 dollars as of 09:40 a.m. Eastern Time (14:40 GMT).

Bitcoin dropped to a 24-hour low of 89,409 dollars, leaving it nearly 30% below its late-October peak above 126,000 dollars.

The decline accelerated after the digital asset failed to hold support around 94,000 dollars, triggering what is known as a “death cross” between short- and long-term moving averages.

The U.S. government reopened last week after the longest shutdown in its history, and analysts say the next round of macro data will be crucial in shaping investor sentiment.

Iliya Katchaev, analyst at Nexo Dispatch, told Investing.com: “If inflation and labor data show further cooling, we may see a short-term rebound; but if not, markets are likely to stay in tight ranges dominated by flows into the weekend.”

Rate-cut doubts spark a wave of risk aversion

Investors have become increasingly doubtful that the Federal Reserve will cut rates in December. Fed officials — including Chair Jerome Powell — have signaled hesitation toward further easing, leaving markets uncertain about the central bank’s next move.

Caution also prevailed due to the lack of fresh data after weeks of delays caused by the recent government shutdown.

This backlog is expected to begin clearing this week, starting with the delayed September nonfarm payrolls report due Thursday.

Additional pressure: slower Bitcoin ETF flows and liquidation waves

Weak inflows into spot Bitcoin exchange-traded funds contributed to the sell-off, as institutional investors stepped back amid rising volatility.

Shares of crypto-linked firms and mining companies also fell sharply, intensifying risk aversion across the digital-asset sector.

The decline followed several massive liquidation waves in crypto derivatives markets, where leveraged positions worth billions were wiped out.

Major analytics firms reported that earlier this month, more than 19 billion dollars in positions were liquidated within just 24 hours, triggering forced selling.

Bitcoin last traded below 90,000 dollars in late April. Its return to these levels highlights how quickly investor confidence has deteriorated as markets reassess geopolitical risks and the timing of U.S. rate cuts.

Crypto platforms disrupted after major Cloudflare outage

Cloudflare suffered a major network outage on Tuesday that knocked out front-end services for a broad range of cryptocurrency platforms and major websites. Millions of applications rely on the company’s infrastructure for security, routing, and edge computing.

Among the affected platforms were Coinbase and Kraken, in addition to major non-crypto services such as ChatGPT, Spotify, and X.

Cloudflare acknowledged the issue around 11:48 a.m. UTC on its status page, describing it as “an internal service degradation.” The company later said it had identified the cause and was deploying a fix.

The outage coincided with scheduled maintenance at several of the company’s data centers, though Cloudflare did not confirm any link and provided no further details.

Crypto prices today: broad altcoin declines

Most altcoins posted sharp losses on Friday amid broader risk-off sentiment.

Ethereum — the world’s second-largest cryptocurrency — fell 2.5% to 3,074.07 dollars.

Ripple, the third-largest token, declined 4.4% to 2.18 dollars.

U.S. stock indexes fell at the start of Tuesday’s session as heavy selling resumed in technology shares, particularly companies linked to artificial intelligence.

Later this week, several key U.S. economic releases are expected, most notably the September nonfarm payrolls report due on Thursday.

This comes a day after the release of the Federal Reserve meeting minutes, which reflected the recent decision to cut interest rates.

Meanwhile, Federal Reserve Vice Chair Philip Jefferson called for caution regarding further rate cuts in the coming period.

Jefferson said he agreed with the cut implemented in October and believes current monetary policy is “somewhat restrictive,” suggesting there may be additional room for easing.

In market trading, the Dow Jones Industrial Average fell 1.3% (587 points) to 46,024 points as of 15:07 GMT, the S&P 500 dropped 1.1% (74 points) to 6,598 points, while the Nasdaq Composite slipped 1.5% (345 points) to 22,370 points.

Silver prices slid in European trading on Tuesday to their lowest level in a week, extending losses for a fourth consecutive session and falling below the 50-dollar-per-ounce threshold, pressured by the U.S. dollar’s ongoing strength in foreign-exchange markets.

More hawkish commentary from Federal Reserve policymakers has reinforced caution toward further monetary easing in the United States, reducing expectations for a rate cut in December.

Price Overview

Silver fell 1.7% to 49.36 dollars—its lowest in a week—down from the opening level of 50.20 dollars, after touching an intraday high of 50.22 dollars.

At Monday’s settlement, silver lost 0.7%, marking a third straight daily decline under pressure from the stronger U.S. dollar.

U.S. Dollar

The dollar index rose 0.1% on Tuesday, extending gains for a third straight session as the U.S. currency continued to strengthen against major and minor peers.

This performance reflects ongoing demand for the dollar as the preferred investment in FX markets, especially as expectations fade for a December Federal Reserve rate cut.

U.S. Interest Rates

Federal Reserve Vice Chair Philip Jefferson said Monday that the central bank needs to “proceed slowly” with additional rate cuts.

According to CME’s FedWatch tool, markets currently price a 45% chance of a 25-basis-point rate cut in December, with a 55% probability of no change.

Investors are closely monitoring Fed remarks while awaiting delayed U.S. inflation and labor-market data.

Outlook for Silver

At Economies,com, we expect that if upcoming Fed comments turn out more hawkish than markets anticipate, expectations for a December rate cut may decline further, adding additional negative pressure on non-yielding assets—particularly precious metals such as gold and silver.

Gold prices fell in European trading on Tuesday, extending losses for a fourth straight session and slipping below the psychological 4,000-dollar level per ounce to their lowest in two weeks, pressured by the U.S. dollar’s continued strength in foreign-exchange markets.

More hawkish commentary from Federal Reserve officials has reinforced caution toward further monetary easing, reducing expectations for a U.S. rate cut in December.

Price Overview

Gold dropped 1.2% to 3,998.04 dollars—its lowest since November 7—down from the opening level of 4,045.18 dollars, after touching an intraday high of 4,055.40 dollars.

At Monday’s settlement, gold lost 0.95%, marking a third consecutive daily decline as correction and profit-taking continued from the three-week high of 4,245.13 dollars per ounce, while dollar strength added downward pressure.

U.S. Dollar

The dollar index edged up by less than 0.1% on Tuesday, maintaining gains for a third session as the U.S. currency continued to strengthen against major and minor peers.

This steady performance reflects ongoing demand for the dollar as the preferred investment in FX markets, particularly as expectations for a December Fed rate cut continue to fade.

U.S. Interest Rates

Federal Reserve Vice Chair Philip Jefferson said Monday that the central bank needs to “proceed slowly” with additional rate cuts.

According to CME’s FedWatch tool, markets are pricing about a 45% chance of a 25-basis-point rate cut in December, with a 55% probability of rates being left unchanged.

Investors are monitoring Fed remarks closely while awaiting delayed U.S. inflation and labor-market data.

Gold Outlook

Edward Meir, analyst at Marex, said the dollar was “slightly stronger today,” and noted that some speculative positions were trimmed last week. He added that gold is likely to enter a consolidation phase for now.

ANZ Bank wrote in a note that expectations for another Fed rate cut next month fell to around 42% overnight, down from nearly 100% immediately after the September decision, adding pressure to investor appetite for gold.

The bank added that structural factors—such as geopolitical uncertainty, concerns about U.S. debt sustainability, global de-dollarization trends, and central-bank buying—are expected to support medium- and long-term investment demand for gold.

SPDR Gold Trust

Holdings at SPDR Gold Trust, the world’s largest gold-backed ETF, fell by 2.57 metric tons on Monday, marking a second straight daily decline and bringing total holdings down to 1,041.43 metric tons, the lowest since November 6.