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Risk-off sentiment deepened in Asian trading as the price of bitcoin (BTC) briefly fell below $90,000 for the first time in seven months before stabilizing near $91,000, a 4.5% drop over 24 hours.

While major alternative cryptocurrencies like XRP (XRP), BNB (BNB) and SOL (SOL) also dropped, they outperformed the largest cryptocurrency. Most of the top 100 coins are in the red, except for a handful of exceptions like ASTER, HYPE, KYPE and ICP.

Some experts attribute BTC's double-digit monthly slide mainly to fading expectations of a December Federal Reserve interest-rate cut.

"The probability of a cut fell from roughly 70% to 42% in just about a week, amplified by the absence of other macro data points," market maker Wintermute said. "[Fed Chair Jerome] Powell walking back the almost certain December cut forced investors to examine individual FOMC member preferences, revealing the cut was far from consensus. The response was immediate: #US risk assets softened and crypto, the most sentiment-sensitive risk asset, got hit hardest."

But there's a silver lining. Data from ING shows that open interest in bullish U.S. Treasury #bond options has increased recently, a sign traders are betting on higher prices and lower yields.

This stance suggests they are anticipating weaker U.S. economic data to revive hopes for faster Fed rate cuts. ING pointed out that with only 15 basis points priced in for a December cut, the room for front-end rates spillover into the dollar is significant. In other words, there is scope for renewed dollar weakness.

For bitcoin bulls battered this month, this outlook could signal a turning point. Declining yields and a softer dollar have historically offered fertile ground for a crypto #rebound . The key question remains: When will this dovish repricing in Treasuries spill over to risk assets, helping bitcoin and the wider crypto market regain poise?

For now, the U.S. dollar index remains firm, poised to extend Monday's bounce from 99.00 and potentially retest the Aug. 1 swing high of 100.25, a level that acted as resistance earlier this month. Its approach and interaction with this key level will be crucial to watch. A clear breakout above 100.25 could increase pressure on risk assets. Stay alert!

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