Bitcoin dipped below $90,000 on Tuesday Hong Kong time on Coinbase, extending a selloff that has now erased all of its 2025 gains and pushed the sentiment into one of its most depressed readings of the cycle.
The drop to $89,420, the lowest level since February, comes just six weeks after prices peaked at a record high of $126,250, marking a sharp turnaround.
The slide accelerated after Bitcoin failed to regain key support at $93,700 over the weekend, breaking below its 200-day moving average and triggering a “death cross” between the 50-day and 200-day trend lines.
While this signal is imperfect, it tends to coincide with multi-week moves when accompanied by evaporating liquidity and stalled ETF inflows – both of which are now visible.
Flows into U.S. spot ETFs, which absorbed more than $25 billion earlier this year, have fallen for nearly two weeks on concerns that the Trump administration’s tariff agenda could fuel another round of inflation and delay rate cuts by the Federal Reserve.
Business balance buyers, who aggressively accumulated in the first half of the year, have also put purchases on hold.
The detail stress deepens. The Crypto Fear & Greed Index fell to 11 on Monday, its lowest reading since the 2022 bear market, signaling “extreme fear.”
Social dominance for Bitcoin, the share of market-wide chatter tied to BTC, has increased, a pattern that historically emerges near local capitulation events as traders abandon altcoins to focus on the benchmark asset.
Analysts warn that failure to recoup $93,000 in the near term leaves a clear cash pocket towards $86,000-$88,000.
Still, some note that sentiment shocks of this magnitude often precede short-term relief hikes if ETF outflows stabilize and macro data turns less hawkish in the coming weeks.
Just noise
Some of the buying pressure that traditionally helped push up bitcoin’s price may now be flowing into real-world stablecoins and tokenized assets, according to Dan Tapiero, an investor and founder of growth equity fund 50T Holdings.
Still, he remains confident about the asset’s long-term prospects, supported by strong fundamentals and growing institutional interest. To him, the short-term uncertainty is just noise, he said.
