Bitcoin has slipped below the critical $91,000 threshold following signals from the Federal Reserve indicating a potential pause in monetary easing. The broader cryptocurrency market is experiencing significant pressure, with emerging sectors like DePIN and AI tokens leading the decline as investors reassess risk exposure amid tightening monetary policy expectations.
The cryptocurrency market faced a sharp downturn on December 11, 2025, as Bitcoin broke below the $91,000 support level, marking a significant correction from recent highs. The selloff intensified following Federal Reserve commentary suggesting a more cautious approach to future interest rate cuts, dampening investor sentiment across digital asset markets.
The world's leading cryptocurrency has been testing lower support levels as macroeconomic headwinds reassert their influence on risk assets. The Fed's signaling of a potential pause in its easing cycle has prompted investors to recalibrate their expectations for liquidity conditions in 2026, directly impacting appetite for speculative assets like cryptocurrencies.
Particularly hard hit in Wednesday's trading session were tokens associated with decentralized physical infrastructure networks (DePIN) and artificial intelligence projects. These narrative-driven sectors, which had experienced substantial rallies in recent months on the back of technological optimism, are now facing profit-taking pressure as market participants rotate toward more defensive positions.
Market analysts point to the correlation between traditional equities and cryptocurrency markets as a key factor in today's decline. As stock futures weakened on Fed commentary, crypto assets followed suit, reinforcing the argument that digital currencies remain sensitive to broader macroeconomic policy shifts despite growing institutional adoption.
The DePIN sector, which encompasses projects building decentralized infrastructure for real-world applications, has been among the most volatile segments during this correction. Similarly, AI-focused tokens have retreated significantly from recent peaks as investors question valuations in a higher-for-longer interest rate environment.
Trading volumes have increased substantially during the selloff, suggesting genuine distribution rather than mere low-liquidity price swings. This development indicates that institutional participants may be reducing exposure ahead of year-end, a common pattern in cryptocurrency markets during December.
Looking ahead, market participants will closely monitor key support levels for Bitcoin, with $90,000 representing a critical psychological threshold. The Federal Reserve's next policy meeting and subsequent dot plot projections will likely determine whether this correction deepens or if buyers emerge to defend current levels. For now, caution appears to be the prevailing sentiment as 2025 approaches its final weeks.