- Bitcoin price drop: BTC fell to $89,420, its lowest since February.
- Market impact: Erased 2025 gains, with over $725 million in liquidations.
- Technical indicators: Death cross formed, fear index at extreme lows.
Bitcoin has tumbled below the $90,000 mark for the first time in seven months, effectively erasing all gains made in 2025. 32 This sharp decline comes just six weeks after the cryptocurrency hit an all-time high of $126,250.
The drop was exacerbated by a technical “death cross,” where the 50-day moving average crossed below the 200-day average, often signaling bearish momentum. Market sentiment has shifted to “extreme fear,” with the Fear & Greed Index plummeting to 10, its lowest since the 2022 bear market.
Key drivers behind the sell-off include stalled inflows into U.S. spot Bitcoin ETFs, which have been flat for nearly two weeks after absorbing over $25 billion earlier this year. Concerns over the Trump administration’s tariff policies potentially fueling inflation and delaying Federal Reserve rate cuts have also weighed on investor confidence.
Analysts at Bernstein view the 25% slide from October’s peak as a short-term correction rather than the end of the cycle. “It does not feel like a cycle-peak,” they noted, pointing to strong institutional participation and absorption of selling pressure by ETFs and corporate buyers.
“It does not feel like a cycle-peak,”
Analysts at Bernstein
However, QCP Capital warned that the picture remains fragile, with a break below key support levels adding to bearish sentiment. The firm highlighted discussions around a potentially delayed four-year cycle following the April 2024 halving.
Bloomberg reported that the reversal amid rising U.S. Treasury yields has deepened the month-long slide. Reuters noted a souring mood in risk-sensitive assets.
On social media, discussions intensified, with posts on X highlighting the plunge and potential for further drops to $85,000.
While Bitcoin (BTC) faces headwinds, Ethereum (ETH) has also declined, reflecting broader market pressures. For more on recent price movements, see this related article: Bitcoin Plunges Below $95,000.
Investors should note potential risks, including further liquidity evaporation and macroeconomic uncertainties.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
