Bitcoin continues to plunge as a cryptocurrency sell-off deepens, shaving off gains in share prices that some Hong Kong-listed firms made this year after launching digital asset initiatives.
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Bitcoin at one point on Tuesday dropped below US$90,000, more than 4 per cent lower than at the start of 2025, after hitting multiple all-time highs this year.
The world’s largest cryptocurrency had “underperformed both gold and the Nasdaq amid risk-off sentiment and tight liquidity, exacerbated by the historical leverage flush in the crypto market since October”, said Steven Nie, associate director at Daiwa Capital Markets.
Last month, a rout that followed bitcoin reaching a record high of US$126,000 wiped out US$19 billion and liquidated more than a million traders who had made leveraged bets on future prices.
Nie said the cryptocurrency market was “in extreme fear”.
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Several Hong Kong-listed companies have slumped recently after having boosted their shares by announcing various digital asset strategies.