Bitcoin drops to three-month low reinforcing 'risks' and 'volatility' of crypto

Bitcoin slipped below $90,000 overnight, hitting its lowest point since November. The world’s largest cryptocurrency saw its steepest daily decline since the global market sell-off in August last year, plunging as much as 7.5% at one point.

Currently, Bitcoin is down about 4% for 2025 and has experienced a more than 14% drop in the past month.

Geopolitical tensions, fuelled by President Donald Trump's aggressive trade policies, continue to pressure the market.

Additionally, a recent high-profile security breach on the Dubai-based cryptocurrency platform Bybit, where hackers stole $1.5billion worth of digital assets last Friday, has further rattled the industry.

Bybit, the world’s second-largest cryptocurrency exchange by trading volume with over 60 million users globally, reported that the hack triggered a surge in withdrawal requests. It has since called on cybersecurity's “brightest minds” to help recover the stolen assets.

Market analysts warn that Bitcoin’s volatility highlights the inherent risks of investing in digital assets.

Jamie Elvin, director at Strive Mortgages, said: "Bitcoin’s drop below $90,000 underscores its extreme volatility. While some see a buying opportunity, the decline is likely driven by profit-taking, macro uncertainty and regulatory concerns.

“For seasoned investors, price swings are expected, but for others, this reinforces the risks of crypto. Anyone considering buying should weigh their risk tolerance. Bitcoin has rebounded before, but sharp corrections are always a possibility."

Responding to whether the latest dip could be a buying opportunity, Tony Redondo, founder at Cosmos Currency Exchange, said: “Maybe. It’s down from $109,000, and some see $150,000+ long-term, but volatility’s brutal. It could hit $80,000 if momentum fades.

“Crypto’s wild swings draw some and scare others off. If you can handle the risk and believe in the trend, a dip might tempt you; if not, it’s a reason to steer clear. Depends on your nerve and outlook."

Dariusz Karpowicz, director at Albion Financial Advice, noted that significant price fluctuations are simply a characteristic of digital assets. However, whether the dip presents opportunity or risk requires a careful assessment.

He said: “The cryptocurrency market's pronounced volatility explains why many financial institutions maintain cautious positions despite growing mainstream acceptance.

“For investors, current conditions present both opportunity and risk, requiring careful assessment of one's financial goals and risk tolerance.

“While enthusiasts may view this as an attractive entry point, prudent investors should remember that cryptocurrency remains a speculative investment that should occupy an appropriate position within a diversified portfolio."