Bitcoin dropped below $90,000 for the first time in seven months on Tuesday, briefly touching as low as $89,286 before recovering slightly to trade near $92,500-$93,600.
The decline erased all of the cryptocurrency's gains for 2025 and left it roughly 30 percent below its October peak above $126,000.
Over $1.2 trillion has been wiped from the total cryptocurrency market capitalization over the past six weeks, according to CoinGecko.
Uncertainty over the Federal Reserve's interest-rate path and a risk-averse mood across global financial markets contributed heavily to the sell-off.
Doubts have grown that the Fed will cut rates in December, with officials signaling reluctance to ease policy further amid limited recent economic data following the longest-ever U.S. government shutdown.
The broader pullback has hit high-flying assets, with the S&P 500 down nearly 3 percent this month, Germany's DAX also off 3 percent, Japan's Nikkei falling 7 percent, and Nvidia shares declining 9 percent.
Listed companies now hold 4 percent of all bitcoin in circulation, with Standard Chartered estimating that a sustained drop below $90,000 could leave half of these corporate treasury holdings underwater.
Crypto-related stocks have suffered sharp declines, including a 21 percent drop in Robinhood Markets and 23 percent in Coinbase Global during November.
Ether has lost nearly 40 percent from its August high above $4,955, while analysts note persistently low sentiment following October's leveraged-position wipeout that saw $19 billion in liquidations.
Despite the downturn, the largest corporate holder continued adding to its position, acquiring 8,178 bitcoin on Monday.