The plunge in the Bitcoin price continued today with the latest fall wiping out all the gains seen so far in the first year of the second Trump presidency.
The cryptocurrency fell below $90,000 for the first time in seven months having peaked at around $126,000 in early October.
The latest jitters come ahead of key Wall Street third quarter earning figures from chip giant Nvdia tomorrow night, the company seen as a bellwether for the AI industry as many of the largest players rely on its GPUs.
It is feared that any shortfall from analysts forecast could send the downturn in financial markets already seen this week into a full blown rout.
The head of Google's parent firm Alphabet Sundar Pichai said that no company would be immune from the fallout of the AI bubble bursting.
In an interview with the BBC he said: "I think no company is going to be immune, including us,” adding “there are elements of irrationality” in the recent surge in tech stock prices.
By mid morning in London bitcoin was trading at $91,329.12, down $771.01, or 0.84%, having gone as low as $89,368 at one stage.
London stocks were also caught up in the turmoil, with the FTSE 100 index of leading company shares falling 87.76, or 0.9% to 9587.67.
Victoria Scholar, head of investment at financial platform interactive investor said: “Bitcoin has now turned negative for 2025, after peaking on 6th October at an all-time high above $126k and has subsequently shed about 28.5%. Earlier it briefly broke below $90k for the first time in seven months.
“This year was meant to be the year of the bitcoin bulls supported by a highly crypto friendly administration in the White House and Trump’s ‘less is more’ approach towards regulation.”
“However, fears of an AI bubble and concerns about the market’s heavy dependence on a handful of tech giants have caused investors to dial back their exposure to speculative assets such as bitcoin.
“There’s a general sense of nervousness that has captured the market mood lately and bitcoin appears to be in the firing line. Plus with hints that the Fed might not cut rates next month, riskier non-yielding assets like bitcoin look less attractive in a higher interest rate environment.”
Joel Kruger, markets strategist at crypto exchange LMAX Group, said: "The crypto market is clearly feeling the pressure right now. Bitcoin has erased all of its gains for the year and slipped into negative territory year-to-date , with ETH following suit .”
But he added: “History has shown us that while Bitcoin’s pullbacks can be sharp, they often present compelling buying opportunities.
“This is still a maturing asset class, and dips have consistently offered attractive entry points – especially now that Bitcoin is finally gaining broader acceptance.”
