Bitcoin News Today: Bitcoin's $90K Slide: A Buying Opportunity or a Precipice of Further Collapse?

Bitcoin's price has plunged below $90,000, pushing over 70% of active capital in the asset into losses and triggering a market sentiment crisis, according to on-chain analytics. The cryptocurrency, which reached an all-time high of $126,250 in October, has since fallen nearly 30%, marking its worst monthly performance since June 2022. The drop has erased $120 billion in market value, with the total crypto market cap now below $2.8 trillion according to analysis.

The collapse has left the average 2025 buyer at a 13% loss, as Bitcoin's price fell below its $103,227 realized cost basis, a metric representing the average price at which coins were last transacted. This breakdown mirrors a similar correction in April 2025, though the current selloff has lasted only 43 days-half the duration of the previous 80-day slump. On-chain data shows that short-term holders (wallets holding coins for up to six months) are particularly vulnerable, with many facing drawdowns exceeding 30% of their cost basis.

The market's fragility is underscored by extreme fear metrics. The Crypto Fear & Greed Index has dropped to 15, its lowest level in two years, while Glassnode's Relative Unrealized Loss indicator hit 8.5%, reflecting a surge in coins held below their acquisition price. Analysts note that such levels historically precede rebounds, as seen after the FTX collapse in 2022. However, the current correction has also triggered a wave of forced liquidations, with over $1.9 billion in leveraged positions wiped out in four hours.

Despite the bearish pressure, some experts argue the market may stabilize. Santiment's data suggests retail traders' extreme pessimism-predicting a drop below $70,000-often precedes reversals, as historical patterns show prices moving in the opposite direction of retail sentiment. Additionally, Bitcoin's weekly chart indicates it is retesting a key support level within a symmetrical rising channel formed since 2023 according to analysis. Geoff Kendrick of Standard Chartered, meanwhile, cites oversold on-chain indicators and MicroStrategy's collapsing modified NAV as signs of cyclical exhaustion, pointing to a potential 40% rebound within three months.

The path forward remains uncertain. While macroeconomic pressures-including fading hopes for Federal Reserve rate cuts and geopolitical tensions-persist, Bitcoin's performance is also tied to institutional actions. MicroStrategy's leveraged Bitcoin holdings, for example, face margin pressures that could trigger further selling if prices continue to fall according to analysis. Conversely, a recovery could gain momentum if short-term holders avoid capitulating at 20–30% unrealized losses, as historical data shows such resilience can prevent full-blown bear markets.