by Vincent Muthee
Bitcoin (BTC) has extended its losses as the market struggles with uncertainty. Today, the coin has dropped below $90,000 for the first time since April, deepening a decline that has erased its gains for 2025.
This pullback follows weeks of weakening demand and heavier selling. Continued drop puts Bitcoin under more pressure as investors look to derisk.
Bitcoin Drops Below $90,000 as Structure Weakens
As of this writing, Bitcoin is trading at $89,741, down over 5% in the past 24 hours and far below its early-October record above $126,000. The daily chart shows a clear breakdown after failing to hold key support zones. BTC’s price also sit below the Supertrend indicator, highlighting a sell signal.
Bitcoin has now fallen more than 29% from its peak, and lower highs have remained in place throughout the month. Attempts to recover above $95,000 failed on Monday, giving sellers more room to push the price lower.
The $90,000 region acted as a major buffer through most of the year, but momentum has flipped after bulls failed to defend the zone for several sessions. The coin now hovers near its lowest levels since April, when prices briefly collapsed to $74,400 during a period of broad market stress.
Trading activity also reflects thinning conviction. Bulls have not returned in strong numbers, and retail buyers who once provided quick support remain cautious. Without a strong rebound, the structure points to increased risk of testing lower levels.
Why is Bitcoin Falling?
Bitcoin’s decline lines up with rising uncertainty around the Federal Reserve’s next policy move. Traders have reduced expectations of a December rate cut, pushing the odds below the 50% mark. As per data by Polymarket, the odds for a December rate cut now sit at 46%. This drop has strained speculative markets with investors cutting back and finding safer positioning.
Stocks and crypto are also experiencing weak risk appetite. Key equity indices have experienced a nosedive from recent peaks, amid wider retreat across the digital space. The $19B liquidation across the crypto market in early October still continues to cast a dark cloud over the market.
Retail participation has started to decline drastically, creating pressure on an already fragile market. Dip-buying, which used to be a reliable support mechanism, has disappeared on Bitcoin and high-beta altcoins. Meanwhile, while institutional players have maintained their positions, they have failed to contribute meaningfully to prevent the market downturn.
Public companies holding large Bitcoin treasuries face added pressure as prices fall below their acquisition levels. Strategy Inc., led by Michael Saylor, for instance, enters a difficult period as markets debate the sustainability of high-volume treasury accumulation.
The derivatives market data shows that traders are anticipating further price drop. As per options data by Coinglass, traders have increased demand for protective puts at $85,000 and $80,000, showing that many expect the slide to continue.
$1 Billion Liquidated in the Past 24 Hours
Liquidations data by Coinglass shows that a total of 180,455 traders were liquidated over the last 24 hours as volatility increased. Total liquidations in this period has reached $1 billion across major exchanges. The highest single liquidation happened on Hyperliquid in a BTC-USD position worth $96.51 million.
This liquidation spike demonstrates the acceleration of the downfall. Forced sales also increase pressure on the market, and may cause additional drops in case the situation remains unstable. Unless Bitcoin’s demand grows, there is minimal chance for a successful recovery in the short-term.
Investors must remain cautious as sentiment remains bearish and technical as well as on-chain indicators show more pressure ahead. However, the market is yet to reach a definite bottom, and sharp movements can still be witnessed in the near future, if bulls regain control.
#blockchain #crypto, #decentralized, #distributed, #ledger
