Bitcoin News Today: Bitcoin's $90k plunge triggers $738M liquidation risk amid Fed uncertainty and shrinking liquidity.

Bitcoin's recent plunge below $90,000 has triggered a surge in liquidation pressures on centralized exchanges, with potential long liquidation volumes reaching $738 million if the price continues to slide, according to Coinglass data. The move follows a death cross formation-a bearish technical indicator-on Nov. 18, which marked the lowest level for Bitcoin since April 2025. The drop erased all 2025 gains, wiping out a 28% decline from its October peak of $126,000.

The liquidation data underscores the heightened volatility in the crypto market. Over the past 24 hours, total crypto liquidations surpassed $1.03 billion, with Bitcoin accounting for $569.37 million of that total. Long positions suffered significant losses, with $77 million in liquidations over four hours, led by Bitcoin's $41.61 million in long liquidations. Analysts warn that further declines could trigger a cascade of forced selling, particularly if Bitcoin breaks below key support levels like $93,500-the year's opening price-or the $89,000-$91,000 range according to analysis.

The bearish sentiment is amplified by macroeconomic uncertainties, including the Federal Reserve's indecision over rate cuts. While some policymakers advocate for easing monetary policy to prevent a labor market slowdown, others remain wary of inflation risks according to market analysis. Meanwhile, the crypto market's liquidity has contracted sharply, with Bitcoin futures open interest dropping 30% to $66.54 billion, signaling reduced speculative activity.

Market participants are closely watching for signs of a rebound. If Bitcoin rebounds above $93,000, short liquidations could hit $1.186 billion, according to Coinglass. However, analysts like KillaXBT caution against high leverage in the current environment, as volatility and liquidity risks remain elevated according to market commentary. The fear and greed index, a gauge of market sentiment, hit an extreme fear level of 11, reflecting widespread panic.

The price action has also reignited debates about Bitcoin's four-year cycle. QCP Capital analysts noted that the recent drop aligns with historical patterns following halving events, though some argue the cycle may be delayed. The $92,000 level-a critical support zone coinciding with an unfilled CME gap-could provide a short-term bounce if buyers emerge according to technical analysis. However, macroeconomic headwinds and weak liquidity may limit any recovery, with users on prediction markets now predicting a 63% chance of Bitcoin falling to $85,000 according to market forecasts.

Billionaire Cameron Winklevoss warned on social media that the current dip could be the "last time you'll ever be able to buy Bitcoin below $90k," signaling a potential inflection point. The market's next move will depend on whether institutional buyers step in to stabilize prices or if the bearish trend persists.