Bitcoin has slipped below the $90,000 mark, further deepening a decline that has erased its gains for 2025 and rattled confidence in the digital asset market. This downturn has been ongoing for a month, following an October peak that saw the cryptocurrency soar above $126,000. As of the latest reports, Bitcoin is trading at approximately $89,847, reflecting a drop of up to 2.4% during Asian trading hours.
The last time Bitcoin traded at such levels was earlier this year when it plummeted to $74,400 in April, a situation reminiscent of the market turmoil incited by former President Donald Trump”s tariff announcements. This recent slump is attributed to growing economic anxieties, particularly regarding interest rate policies and the overvaluation of speculative markets.
As traders recalibrate their expectations for a potential Federal Reserve rate cut in December, the overall sentiment toward risk has soured, leaving Bitcoin vulnerable to further declines. A significant selloff in October triggered over $19 billion in liquidations, erasing more than $1 trillion in market capitalization across the cryptocurrency landscape. While institutional investors have largely held their ground, retail engagement has diminished, particularly in speculative altcoins.
Recent data from Coinglass indicates that nearly $950 million in long and short positions have been liquidated within the past 24 hours. Entities holding substantial crypto assets, such as Michael Saylor”s Strategy Inc., are now facing increased pressure to reassess their positions as support levels continue to erode.
What”s next for Bitcoin? Options traders are increasingly seeking downside protection, with a notable focus on the $85,000 and $80,000 price points. This environment may create opportunities for individual investors, corporations, and governments to accumulate Bitcoin at a discounted rate. For instance, El Salvador recently acquired 1,091 Bitcoin, valued at over $100 million, as part of its ongoing strategy to bolster its cryptocurrency reserves. Since adopting Bitcoin as legal tender in 2021, the country has consistently purchased during market downturns and now holds a total of 7,474 BTC, worth approximately $688 million, positioning itself as one of the largest national holders of Bitcoin.
