Bitcoin drops below $90,000

Bitcoin slipped below the $90,000 threshold in mid-December, touching a two-week low as a global selloff in technology stocks weighed on risk appetite.

The decline was driven by concerns over elevated valuations and aggressive AI related spending, alongside growing uncertainty around the US Federal Reserve’s policy outlook for next year.

Additional pressure came from fears of a sharper Bitcoin correction after Strategy Chairman Michael Saylor warned of “chaos, confusion and profoundly harmful consequences” if his Bitcoin heavy company were to be removed from MSCI indices.

Saylor has urged MSCI to withdraw a proposal that would exclude companies whose crypto holdings exceed 50% of total assets from its global equity benchmarks.

Analysts cautioned that the proposal could trigger outflows of up to $8.8 billion from Strategy’s stock if other index providers adopt similar rules, amplifying volatility across crypto linked assets.