The world's largest cryptocurrency was trading 5.4% lower at $90,091.5 as of 08:22 Moscow time.
Bitcoin dropped below $90,000 on Tuesday for the first time in almost seven months, as uncertainty about the U.S. Federal Reserve's interest rate trajectory and caution over delayed economic data dampened demand for risky assets.
Bitcoin has fallen to a low of $89,471.4 in the last 24 hours, about 30% below its late October peak above $126,000.
The decline accelerated after bitcoin failed to hold support near $94,000 and formed a technical "death cross" on the short- and long-term moving averages.
Doubts about the Fed's rate cut are causing a "risk-off" mood
. Investors increasingly doubt that the Fed will lower the rate at the December meeting. Fed officials, including Chairman Powell, have signaled an unwillingness to ease further, leaving investors uncertain about the central bank's next move.
Markets were also cautious as policy makers still don't have enough data after weeks of publication delays caused by the recent U.S. government shutdown.
The data release backlog will begin to narrow this week, with the release of the non-agricultural employment report for September scheduled for Thursday.
Bitcoin is under Pressure due to a Slowdown in ETF Inflows and Liquidation Waves
Weakening inflows into bitcoin spot exchange-traded funds also contributed to the downturn, as institutional buyers retreated amid rising volatility.
Shares of cryptocurrency-related companies and mining companies have also plummeted, reinforcing risk aversion across the entire digital asset complex.
The move also follows a series of large-scale liquidation waves in the crypto derivatives markets, where billions of dollars worth of leverage positions have been liquidated.
Data from major analytical firms showed that earlier this month, more than $19 billion of cryptos were liquidated in a single 24-hour period, triggering forced sales.
The last time bitcoin traded below $90,000 was in late April. His return to these levels highlights how quickly investor confidence has deteriorated as markets overestimate geopolitical risks and the timing of U.S. rate cuts.
Cryptocurrency Prices Today: Altcoins are falling after Bitcoin
Most altcoins also posted sharp losses on Friday amid broader risk aversion.
The second largest cryptocurrency, Ethereum, fell 5.6% to $3,008.92.
The third largest cryptocurrency, XRP, declined 4.4% to $2.15.
Solana dropped 4%, while Cardano dropped 5% and Polygon lost 3%.
Among the meme tokens, Dogecoin dropped 4%, while $TRUMP dropped 1%.