Key Highlights
- Bitcoin price plummets under $90,000 for the first time since February 2025.
- The “death cross” and stalled ETF inflows are cited as key factors in the decline.
- Sentiment among retail investors is at its lowest level since the 2022 bear market.
- Analysts warn of potential short-term relief rallies if macro data stabilizes.
Bitcoin Plunges Below $90,000: A Sharp Reversal from Record Highs
Bitcoin’s price has crashed below the psychological threshold of $90,000 for the first time since February 2025. The cryptocurrency market, which was enjoying a robust year in 2025, saw its value decline sharply over just six weeks. This significant drop comes as a result of multiple factors, including technical indicators such as the “death cross,” and concerns about ETF inflows amid inflationary pressures.
Technical Indicators: The Death Cross
The term “death cross” in technical analysis refers to a scenario where the 50-day moving average falls below the 200-day moving average. This pattern often precedes significant market drawdowns, as observed in this case with Bitcoin. The failure of Bitcoin to reclaim key support at $93,700 over the weekend further exacerbated the selling pressure. Analysts warn that a short-term liquidity pocket may form between $86,000 and $88,000 if the price fails to break above $93,000 in the near term.
ETF Inflows and Market Sentiment
The decline has been exacerbated by stalled inflows into U.S. spot ETFs that had absorbed over $25 billion earlier in 2025. This slowdown is linked to concerns about potential tariff increases under the Trump administration, which could potentially inject another round of inflation. Corporate balance-sheet buyers who had aggressively accumulated Bitcoin during the first half of 2025 have also paused their purchases, adding to retail stress.
The Crypto Fear & Greed Index fell to a record low of 11 on Monday, indicating “extreme fear” among investors. Social dominance for Bitcoin, defined as the share of marketwide chatter tied to BTC, has surged, reflecting traders’ abandonment of altcoins in favor of the benchmark asset.
Short-Term Outlook and Analysts’ Views
Despite the sharp decline, some analysts remain optimistic about Bitcoin’s long-term prospects. Dan Tapiero, an investor and founder of 50T Holdings, maintains that this is “just noise” and believes in strong fundamentals supporting the asset. However, he acknowledges short-term uncertainty due to these market dynamics.
While there are concerns about a potential bottom forming near $86,000–$88,000, some analysts caution that sentiment shocks of this magnitude often precede relief rallies if macroeconomic data turns less hawkish in the coming weeks. The crypto space remains volatile, and investors should remain cautious as market conditions evolve.
