Bitcoin briefly plunged below $90,000 for the first time in months, wiping out all gains accumulated since the start of 2025 as extreme fear grips cryptocurrency markets for the sixth consecutive day. The dramatic downturn sent shockwaves through the digital asset ecosystem, with Ethereum sliding below $3,100 and major altcoins following suit in a broad-based selloff.
The cryptocurrency market experienced a sharp downturn as Bitcoin momentarily breached the critical $90,000 support level before recovering to trade around $91,300, marking a 4% decline. The slide erased all of Bitcoin's year-to-date gains, pushing the flagship cryptocurrency into negative territory for 2025 and underscoring the fragility of recent market sentiment.
Ethereum fared worse, dropping 5% to $3,050, while other major cryptocurrencies including BNB and Solana posted losses of 2% and 3% respectively. The Crypto Fear & Greed Index remained firmly entrenched in "extreme fear" territory at 11, marking the sixth consecutive day of maximum pessimism among market participants.
Despite the bearish backdrop, several altcoins bucked the trend. Internet Computer (ICP) surged 9%, Astar gained 7%, and Hyperliquid's HYPE token climbed 5%, demonstrating selective strength in specific segments of the market.
On the regulatory front, the White House is reportedly considering measures that would allow the IRS to track and tax cryptocurrency holdings on foreign exchanges, potentially adding compliance pressure to international traders. However, Japan offered a counterpoint with positive news, announcing plans to slash cryptocurrency capital gains taxes from 55% to a more competitive 20%, a move that could stimulate Asian market participation.
Infrastructure developments continued despite market turbulence. The Cboe unveiled "continuous" Bitcoin and Ethereum futures contracts with 10-year terms, offering a perpetual futures alternative for institutional traders. Meanwhile, Ethereum co-founder Vitalik Buterin launched Kohaku, an initiative aimed at integrating privacy and security features directly into Ethereum wallets rather than relying on third-party add-ons.
In the corporate sector, Trump International Maldives announced tokenized real estate offerings for its 80-villa luxury resort, while Hive Digital stock jumped following record Q2 revenue and new AI infrastructure contracts, demonstrating resilience in the Bitcoin mining sector.
Coinbase Ventures added to its portfolio with an investment in USD AI, signaling continued institutional interest in crypto-adjacent technologies despite the broader market weakness. As volatility persists, market participants are closely watching whether Bitcoin can reclaim the $92,000 level or if further downside lies ahead.