Bitcoin price fell below $90,000 and hit $89,500 for the first time in seven months. The decline shook the market and pushed the Fear and Greed Index to “extreme fear.” Many traders are currently concerned about the possibility of the price falling further, with some predicting the BTC price to drop as low as $86,000.
The main reason why Bitcoin price crashes?
BTC price breaks through major support levels
Bitcoin’s decline began over the weekend, failing to break above the key support level of $92,000. When that level turned into resistance, the market mood changed rapidly.
BTC is currently trading around $89,780, down 5% in 24 hours and over 14% for the week. It was the drop below the psychological $90,000 line that caused the real panic. This decline opened the floodgates to forced liquidation.
Over 180,000 traders have been liquidated in the past 24 hours alone, with over $1 billion wiped out, with long positions taking the biggest hit. The single largest liquidation was by HyperLiquid, with a massive BTC-USD position of $96.5 million.
Corporate buyers are silent
Earlier this year, aggressive purchases by large corporate buyers contributed to Bitcoin’s rise. But now that demand is slowing. Companies normally known for aggressive acquisitions, such as Strategy and Metaplanet, are slowing down.
Although the strategy added 487BTC last week, overall corporate purchases were significantly lower compared to the first half of this year. This decline weakened one of Bitcoin’s strongest sources of support.
ETF outflows add further pressure
Bitcoin ETFs once saw billions of dollars in inflows, but now they’re moving in the opposite direction. Over the past few days, $1.85 billion has been removed from U.S. spot ETFs. Surprisingly, BlackRock, typically the strongest ETF buyer, led the withdrawals, leaving more than $900 million.
Concerns over the Trump administration’s tariff plans and uncertainty over future Fed rate cuts are also dampening investor confidence.
Social dominance reaches extreme levels
According to Santiment data, Bitcoin’s “social advantage” rose to 60%, the highest in four months. This usually happens when traders panic and their attention shifts from altcoins back to Bitcoin. Historically, such moments often mark market bottoms or major turning points.
What happens next?
Despite this bearish market outlook, some analysts remain hopeful. Meanwhile, Gemini co-founder Cameron Winklevoss believes this may be the “last chance” to buy Bitcoin for under $90,000.
However, technical experts have warned that if Bitcoin does not regain $93,000 soon, it could fall toward a liquidity zone around $86,000 to $88,000.
For now, the market remains nervous, trying to figure out whether this decline will be a major correction or a big buying opportunity.
