Bitcoin Plunges to Three-Month Low as Tech Stocks Tumble and Yen Strengthens

Bitcoin's price fell below $89,000 during early European trading hours on Tuesday, reaching a three-month low. This decline coincided with a dip in Nasdaq futures, which pointed to continued losses in technology stocks. Additionally, the Japanese yen's strength sparked fears of a risk-off sentiment reminiscent of August.

The leading cryptocurrency hit a low of $88,500, a level not seen since mid-November, according to CoinDesk data. Nasdaq futures dipped by 0.3%, indicating an extension of a three-day losing streak. The tech-heavy index has dropped by over 4% since February 18.

The anti-risk Japanese yen traded at 149.38 per USD and appeared poised to challenge the near three-month high of 148.84 hit on Monday. The JPY has strengthened by nearly 6% in six weeks, fueled by bets that the Bank of Japan will raise rates.

The Bank of Japan's (BOJ) rate hike talk and the yen's strength have revived memories of July, when the yen surged on the central bank's rate hike. This ultimately led to a broad-based risk aversion that saw bitcoin crash from roughly $65,000 to $50,000 within days.