Why is bitcoin falling? Prices dip below $90,000 levels, wipe out $130 bn from crypto market

The volatility has been observed across other crypto tokens, too, with ETH up 0.23 percent, ADA down 0.73 percent, SOL down 0.21 percent, XRP up 0.82 percent, and BNB down 0.50 percent in the past 24 hours.

Bitcoin price stood at $89,608 on December 15 (11:13 a.m IST), which is a 0.62 percent dip in the last 24 hours, wiping over $130 billion from the total crypto market capitalization, now at $2.98 trillion. In the morning session, the world's largest cryptocurrency fell as low as $87,996 and reached a peak just above $89,923.

“Around 116,000 traders were liquidated, with total losses exceeding $295 million, a reflection of high leverage and fragile sentiment. Bitcoin is consolidating between $87,500 and $91,000, showing a bearish bias, while Ethereum is oscillating between $2,900 and $3,180, roughly 37.5% below its all-time high,” said Riya Sehgal, Research Analyst, Delta Exchange.

The volatility has been observed across other crypto tokens, too, with ETH up 0.23 percent, ADA down 0.73 percent, SOL down 0.21 percent, XRP up 0.82 percent, and BNB down 0.50 percent in the past 24 hours.

Check out the cryptocurrency prices on December 15, as of 11:13 a.m (IST).

Sehgal added that bitcoin’s failure to hold the $90,000 support coincides with expectations of a hawkish Bank of Japan policy shift, a move that historically drains global liquidity and pressures risk assets.

"Each BoJ rate hike since 2024 has triggered a 20–30% Bitcoin drawdown, and traders are again positioning defensively. In the last 24 hours, the market fell 1.01%, extending a 4.83% monthly decline,” she said.

According to Nischal Shetty, Founder, WazirX, the global markets remain caught between easing signals in the West and tightening pressure in Asia, creating a push-and-pull environment for risk assets, including crypto. Expectations of further rate cuts from major Western central banks continue to ease liquidity conditions. The UK's Treasury announcing crypto regulations has added a new layer of optimism.

“But across Asia, markets are pulling back from risk on assets, mirroring equity market trends as opposed to their potential role as an alternate asset. Structural reforms, favorable demographics, and rising domestic consumption could be favourable catalysts for long-term crypto adoption in Asia. As of now, the East remains cautious and waits on the sidelines for favourable conditions to unfold,” said Shetty.