Bitcoin fell below $90,000. Still forming or its collapse already?

The decline in the crypto market is parallel to the decline in traditional platforms. Over the course of a day, the capitalization of the United States stock market decreased by about a trillion dollars. The fear and greed index fell to ten points, which became the minimum value in the last eight months. Later, the indicator increased slightly to eleven points. Ethereum also updated the local minimum, falling below two thousand nine hundred and fifty dollars at the time of trading. The downward trend was formed back in October after Donald Trump’s loud statement regarding tariffs on China and was consolidated by subsequent market fluctuations.

Nobody knows why Bitcoin fell

The most noticeable detail of the current decline is that none of the leading analytical agencies names a clear reason for the sharp market movement. Bloomberg indicates that Bitcoin is falling quickly and clearly without a specific trigger. One version is called the deterioration of expectations of a possible reduction in interest rates by the US Federal Reserve in the coming month. The market reaction to the statement of the head of the Pentagon, Pete Hegseth, about the beginning of the US military operation in Venezuela is also being discussed. An additional factor is the technical structure of the chart: Bitcoin is approaching the formation of a “death cross”, when the fifty-day average follows below the two hundred-day. Such intersections have often been recorded in the final phases of four-year market cycles.

Bitwise Asset Management notes that the market is dominated by a risk-off mode. Chief Investment Officer Matthew Hogan, in a comment to Bloomberg, emphasized that cryptocurrencies were the first assets to react to the general uncertainty. NBC News writes that the correction has forced investors to once again question the thesis that Bitcoin can serve as a hedge against inflation. The digital currency’s move this time coincides with a massive sell-off in the artificial intelligence market, which many consider overheated and unstable.

Nansen senior analyst Jake Kennis attributes the decline to a combination of factors, from profit-taking by long-term holders and declining institutional demand to macroeconomic risks and liquidations of highly leveraged positions. In his opinion, after a long period of consolidation, the market has chosen a temporary downward trend.

What awaits Bitcoin next

Analysts remain concerned about the possibility of further sharp declines in Bitcoin. The current movement contradicts the active political support of the industry from President Donald Trump. The administration is promoting deregulation of the crypto industry and is working on legalizing stablecoins. The White House has also discussed the creation of a strategic reserve of Bitcoin.

At the same time, the market also retains optimistic forecasts. Standard Chartered believes that the achievable level of two hundred thousand dollars by the end of 2025. Stephen McClurg of Canary Capital calls the benchmark one hundred and fifty thousand dollars. Antonio Scaramucci estimates a possible range of one hundred and eighty-two hundred thousand dollars. Analyst Timothy Peterson suggests that Bitcoin may return to growth by Christmas and reach about one hundred and sixty thousand dollars. The Tephra Digital team predicts movement in the range of one hundred and sixty-seven to one hundred and eighty-five thousand dollars in 2025-2026. Robert Kiyosaki expects a level of two hundred thousand dollars, citing a possible increase in institutional demand.