Bitcoin News Today: Bitcoin's Selloff Sparks Panic, but Bulls Bet on $100K Comeback by 2026

Bitcoin's price has plunged below $90,000 for the first time in seven months, marking a 30% drop from its October peak of $126,272 and triggering widespread panic in the crypto market. The cryptocurrency, now trading around $86,000–$87,000, has erased much of its 2025 gains, with the total crypto market cap contracting by over $1 trillion since October. Analysts are split on whether this represents a prolonged bear market or a correction that could pave the way for a $100,000 rebound by 2026.

The recent selloff has been fueled by a confluence of factors, including macroeconomic headwinds, institutional outflows, and geopolitical tensions. U.S. spot Bitcoin ETFs, which had driven significant demand earlier in the year, saw $3.7 billion in outflows since October 10, with BlackRock's IBIT alone recording a $523 million single-day outflow. Meanwhile, the Federal Reserve's sustained hawkish stance and delays in rate cuts have dampened risk appetite, exacerbating Bitcoin's decline.

Retail and institutional investors alike have faced heavy liquidations. Over $2 billion in leveraged positions were wiped out in a 24-hour period as Bitcoin broke below $85,000, with long positions accounting for 93% of the losses. The Crypto Fear & Greed Index hit a multi-year low of 11, signaling "extreme fear" among traders.

Despite the turmoil, some high-profile figures remain bullish. Robert Kiyosaki, author of Rich Dad, Poor Dad and a vocal Bitcoin advocate, recently sold his $2.25 million BTC holding but reiterated his belief in the asset's long-term potential. He plans to reinvest the proceeds into businesses and has maintained a $250,000 price target for 2026 according to recent analysis. Similarly, veteran trader Peter Brandt predicts Bitcoin will reach $200,000 by Q3 2029, citing the asset's resilience during market flushes.

Legislative developments in the U.S. also offer a glimmer of hope. Rep. Warren Davidson's Bitcoin for America Act proposes allowing taxpayers to pay federal liabilities in Bitcoin, with projections suggesting a $14 trillion boost to the economy if 1% of taxes are remitted in BTC over 20 years. The bill could create a steady inflow of Bitcoin into the Strategic Bitcoin Reserve, potentially stabilizing demand and signaling institutional confidence.

The U.S. dollar's strength and rising Treasury yields have further pressured Bitcoin, as risk assets compete with safer investments. However, Asia's IPO boom and growing institutional adoption of Bitcoin-evidenced by corporate treasuries holding 1.51 million BTC-suggest underlying demand remains robust. Analysts note that Bitcoin's NVT (Network Value to Transaction) Golden Cross, a historical buy signal, has approached -1.6, reinforcing the case for a potential rebound.

Technical indicators point to critical levels for Bitcoin. A hold above $83,000–$85,000 could trigger a gradual recovery toward $100,000, while a breakdown below $75,000 may prolong the bearish trend. Institutional analysts at Bitfinex argue that short-term distress does not reflect deteriorating fundamentals, emphasizing Bitcoin's role as a hedge against inflation and fiat devaluation.

Bitcoin's current volatility underscores its evolving integration into global financial systems. While macroeconomic uncertainty and ETF outflows have intensified short-term pain, structural factors-including legislative innovation, institutional adoption, and Asia's economic momentum-suggest a path to recovery. Whether the asset can reclaim $100,000 will depend on the Fed's policy direction, the pace of ETF inflows, and the ability of investors to weather the "extreme fear" phase.

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