Asia Markets on Edge: Bitcoin Dips Below $90K as US Data Delay Sparks Risk-Off Sentiment

Asian markets opened cautiously as Bitcoin slipped under the $90K psychological level—just days after flirting with all-time highs. The pullback coincides with regional stock declines as traders brace for delayed US economic data that could reshape Fed policy expectations.

Cryptocurrencies mirror traditional risk assets' nervousness, proving once again that 'decorrelation' claims vanish when macro winds shift. Meanwhile, institutional investors keep stacking SATs—because nothing says 'hedge against inflation' like an asset that swings 10% before breakfast.

Market snapshot

• Bitcoin: $90,190, down 5.1%
• Ether: $2,994, down 5.5%
• XRP: $2.15, down 4.5%
• Total crypto market cap: $3.17 trillion, down 4.4%

That reset weighed on equities. US stocks closed sharply lower on Monday, with the S&P 500 and the Nasdaq both slipping below a closely watched technical level for the first time since late April as traders braced for earnings from major retailers and chip giant Nvidia, alongside the delayed jobs report.

US stocks ended sharply lower as investors awaited a long-delayed US jobs report this week and braced for quarterly results from retailers and chip giant Nvidia pic.twitter.com/V3lSA4D3z2

Crypto Sentiment Weakens As Traders Unwind Positions And Cut Leverage

Asia followed the weaker lead. MSCI’s broadest index of Asia Pacific shares outside Japan fell 0.7%, while Japan’s Nikkei dropped more than 2%. The early decline reflected caution ahead of both US data and Nvidia’s earnings, which many see as a temperature check on the AI trade that has powered much of this year’s stock rally.

Bitcoin’s slide tracked that shift in mood. The token fell under $90,000, its lowest level in about six months, as traders unwound positions built on expectations of aggressive Fed easing and grew more wary of macro risk.

Gadi Chait, investment manager at Xapo Bank, said the MOVE is rattling newer market participants more than long-time holders. He argued that the drop reflects leverage being flushed out and portfolios being adjusted rather than a break in the long-term adoption story for crypto.

“While some will search for specific triggers — whether residual effects from October’s deleveraging or broader macro shifts — the precise cause is largely secondary,” he added. “Periodic drawdowns are a familiar feature of this market. Those who have been in the space for years recognise this pattern: we’ve seen it before, and we’ll see it again.”

US Data To Resume After Shutdown, But Markets Still Lack Clarity

Analysts at Bitfinex struck a similar tone, pointing to the size of the recent decline. “Statistically, given that this is the third largest pullback since 2023 and the second largest since Bitcoin ETFs launched across major US providers, it feels like it is time for a local bottom to be established relatively soon.”

Sentiment around equities remains fragile. This month, stocks have come under pressure as investors question whether AI enthusiasm has pushed valuations to stretched levels, especially with growth indicators softening and policy still tight. Nvidia’s results on Wednesday sit at the centre of that debate.

The end of the longest US government shutdown on record has cleared the path for data to resume, but the information gap has already forced markets to trade in the dark on parts of the economic picture.

Private surveys have flagged signs of slowing, even as Fed officials push back on the idea of rapid easing.