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Bitcoin News Today: Bitcoin Drops to $90K—Is This a Prime Buying Chance or the Start of a Deeper Downturn?

Bitcoin News Today: Bitcoin Drops to $90K—Is This a Prime Buying Chance or the Start of a Deeper Downturn?

Bitget-RWA2025/11/22 22:12
By:Bitget-RWA

- Bitcoin fell below $90,000, pushing 70% of active capital into losses and erasing $120B in market value. - Short-term holders face >30% drawdowns, with fear metrics hitting 2-year lows as $1.9B in leveraged positions liquidated. - Analysts cite historical rebounds after extreme fear, but MicroStrategy's leveraged holdings risk further selling if prices drop. - Institutional actions and Fed policy uncertainty remain key factors, though oversold indicators suggest potential 40% near-term rebound.

Bitcoin has dropped below $90,000, resulting in losses for more than 70% of invested capital and

, based on blockchain analytics. After peaking at $126,250 last October, the digital currency has declined by nearly 30%, . This downturn has wiped out $120 billion in value, bringing the total cryptocurrency market capitalization below $2.8 trillion .

This sharp decline means the average investor who bought in 2025 is now facing a 13% loss,

, which reflects the average price at which coins last changed hands. This situation is reminiscent of the correction seen in April 2025, though the current downturn has lasted just 43 days—about half as long as the previous 80-day slide. that short-term investors (those holding coins for up to six months) are especially exposed, with many seeing losses that exceed 30% of their original investment.

Bitcoin News Today: Bitcoin Drops to $90K—Is This a Prime Buying Chance or the Start of a Deeper Downturn? image 0

Indicators of extreme fear highlight the market's vulnerability.

, its lowest reading in two years, while Glassnode’s Relative Unrealized Loss metric has climbed to 8.5%, showing a significant increase in coins held at a loss. that such conditions have often preceded recoveries, as was the case after the FTX collapse in 2022. Still, the current downturn has also led to a surge in forced liquidations, within just four hours.

Although bearish sentiment dominates, some analysts believe the market could find stability.

that retail investors’ extreme negativity—expecting a drop below $70,000—often signals an impending reversal, as price trends frequently move contrary to retail sentiment. Moreover, Bitcoin’s weekly chart shows it is testing a crucial support level within a symmetrical ascending channel that has been in place since 2023 . Meanwhile, Standard Chartered’s Geoff Kendrick points to oversold blockchain indicators and MicroStrategy’s falling modified NAV as evidence of a cyclical bottom, .

The outlook remains unpredictable. While macroeconomic factors—such as diminishing expectations for Federal Reserve rate cuts and ongoing geopolitical risks—continue to weigh on the market, Bitcoin’s trajectory is also influenced by institutional moves. MicroStrategy’s leveraged

assets, for instance, are under margin pressure that could prompt more selling if prices keep falling . On the other hand, if short-term holders resist selling at 20–30% unrealized losses, as historical trends show such resilience can help avoid deeper bear markets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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