Bitcoin sinks below $90k as macro jitters mount; bottom or further pain?

BTC price today: Analysts attribute the slide to uncertainty around potential US interest-rate cuts, broader weakness across equity markets, and profit-taking by large holders

Bears continue to dominate the crypto markets as Bitcoin (BTC) plunged below the $90,000 mark for the first time in seven months, extending a sharp downturn in the flagship token. BTC has now fallen 28 per cent from its all-time high of $126,198, hit earlier this year on October 7.

 

Analysts attribute the slide to uncertainty around potential US interest-rate cuts, broader weakness across equity markets, and profit-taking by large holders.

 

Although Bitcoin has since reclaimed the $90,000 level, sentiment remains fragile. At the time of writing, BTC was trading at $90,883.94, down 5 per cent in the past 24 hours, with a 24-hour trading volume of $115.86 billion. During the session, the token fluctuated between $89,300 and $95,928, according to CoinMarketCap data.

 

Ashish Singhal, Co-founder of CoinSwitch, said the current pullback reflects “a period of short-term volatility across markets.”

 

“While some point to the death cross, similar patterns in the past have also preceded recoveries. Overall, the movement reflects a period of short-term volatility across markets. For some participants, the pullback may also be viewed as an opportunity to accumulate at lower levels,” Singhal said.

 

However, other analysts caution that the market’s risk-off tone may persist. Ryan Lee, chief analyst at Bitget, flagged the recent Bitcoin death cross — where the 50-day SMA dipped below the 200-day SMA — as a bearish technical signal with historically mixed implications.

 

“While this pattern sometimes marks local bottoms followed by short-term rebounds, it has also preceded deeper corrections during extended bear phases,” Lee noted.

 

“In the current environment, defined by stabilising liquidity, returning institutional flows, and waning expectations for a December rate cut (now near 50 per cent odds), traders should remain cautious. Added pressure from reports such as Tom Lee’s warning about two major market makers facing financial deficits and lingering systemic risks suggests the market’s risk-off tone may persist in the near term,” he added.

 

According to Lee, this backdrop may encourage more defensive strategies, including hedging or selective spot accumulation on platforms like Bitget, as investors brace for volatility while positioning for a medium-term recovery.

 

Macro headwinds, meanwhile, remain a major drag on crypto. Vikram Subburaj, CEO of Giottus, pointed to strong US manufacturing data and fading expectations of a December Fed rate cut — developments that have tightened financial conditions.

 

“This has pushed risk assets lower even as the US government re-opens. Inflows into short-Bitcoin products and multi-asset ETPs show that institutional investors are hedging exposure rather than exiting entirely. This is indicative of traders exercising caution amid low liquidity and conflicting policy signals,” Subburaj said.

 

Despite the selloff, analayts said, on-chain indicators such as realised losses and short-term holder capitulation suggest the market may be entering a late-stage correction rather than a full-scale bear reversal.

 

From a technical standpoint, Subburaj advises investors to treat the $92,000–$90,000 zone as the first major defence.

 

“It is where futures open interest is compressing and where the market must prove buy-side intent after the $91,000 low. Add only if spot leads perps and we see a clean hold or reclaim above $92,000. If the band gives way on rising spot selling, step aside and wait for the next demand cluster rather than averaging down. Keep risk in BTC/ETH,” he said.

 

Riya Sehgal, research analyst at Delta Exchange, added that Bitcoin is currently testing the $89,000–$91,000 support area — a key zone that could trigger a short-term bounce if buyers defend it.