Bitcoin falls below $90,000 for first time in seven months

Bitcoin fell below $90,000 for the first time in seven months.

Bitcoin fell below $90,000 on Tuesday for the first time in seven months, signaling waning investor appetite for risk in financial markets.

The cryptocurrency dropped 2.12% to $89,873 at 9:09 a.m. Mecca time, according to data from Coinbase.

The decline erases much of the gains Bitcoin made earlier this year, leaving it down about 30% from its October peak above $126,000.

Ethereum rose 0.4% to $3,002.29, while XRP gained 0.42% to $2.1591 and Dogecoin climbed 1.99% to 15.48 cents.

Adam McCarthy, research analyst at Kaiko, told Bloomberg that Federal Reserve policy and concerns over an artificial intelligence bubble are key headwinds for cryptocurrencies and other risk assets as the year draws to a close.