Bitcoin extended a sharp sell-off on Tuesday, sliding to the $84,000 range and reversing gains from highs above $90,000 reached less than 24 hours earlier, as macroeconomic uncertainty and thin market structure weighed on risk assets.

The cryptocurrency fell as low as $84,416, marking a decline of roughly 6% from recent intraday highs, according to data from Bitcoin Magazine Pro. The rapid reversal highlighted heightened volatility ahead of key macro signals, including this week’s U.S. Federal Reserve policy meeting.

Selling pressure intensified as daily trading volume climbed to approximately $48 billion, pointing to forced liquidations and the unwinding of leveraged short-term positions. Bitcoin’s total market capitalization dropped to around $1.72 trillion, down about 4% on the day, reflecting broader weakness across the digital asset market.

Market participants pointed to the Federal Reserve’s policy stance as a central driver of the move. With U.S. unemployment holding at 4.4%, Federal Reserve Chair Jerome Powell emphasized labor market resilience and offered no indication of near-term monetary easing. The message dampened appetite for speculative assets, turning the meeting into a catalyst for risk-off positioning across crypto markets.

The downturn spilled into crypto-linked equities, with shares of MicroStrategy, the largest corporate holder of bitcoin, falling to a new 52-week low as investors reassessed exposure to bitcoin-sensitive balance sheets. The company’s stock has historically tracked bitcoin’s price movements due to its substantial holdings of the digital asset.

Analysts noted that while long-term fundamentals remain a point of debate, near-term price action continues to be driven by liquidity conditions, monetary policy expectations, and leverage dynamics. Attention now turns to follow-up signals from policymakers and whether bitcoin can stabilize above key technical support levels as broader markets digest the Fed’s outlook.