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Bitcoin Drops Below $90,000, Erasing 2025 Gains as Risk Appetite Fades

Fading expectations for a near‑term Fed rate cut and sustained outflows from spot ETFs have combined with renewed liquidations and weak technical signals to pressure prices.

Overview

  • Tuesday’s slide leaves bitcoin roughly 28% below its October record above $126,000, with estimates showing about $600 billion in market value erased.
  • Rate‑cut odds for December have fallen to below 50% by several gauges, and a broader pullback in richly valued tech shares has weighed on risk assets.
  • U.S. spot bitcoin ETFs recorded persistent withdrawals, including about $255 million on Monday and more than $1.1 billion over the past week, removing a key source of demand.
  • Derivatives stress has persisted, with nearly $950 million in long and short positions liquidated over the past 24 hours and an earlier October wipeout topping $19 billion.
  • Bearish technicals include a break of the 50‑week moving average and a 50/200‑day death cross, while options flows favor downside protection near $85,000–$80,000; ether fell below $3,000 and crypto‑exposed stocks also declined as sentiment split on whether this pullback is a buying opportunity or a sign of further downside.