Bitcoin falls sharply back above $90,000, but investor sentiment remains cautious.

Bitcoin returned to above $90,000 on Tuesday, recovering from a recent sharp drop that caught Wall Street off guard, wiping out nearly $1 billion in new leveraged bets. This rebound provided a moment of respite from months of decline, but traders remain cautious, market sentiment is still fragile, and signs of sustained pressure in the cryptocurrency market are evident. Bitcoin rose by as much as 6.8% to $92,323, while Ethereum rebounded by over 8%, with prices rising to above $3,000 at one point. Smaller, less liquid tokens such as Cardano, Solana, and Chainlink saw gains of over 10%.