The world’s largest cryptocurrency extended its month-long decline on Tuesday, falling nearly 2% to around $89,953 in Asian trading, after collapsing through key technical support at $98,000 last week. The drop marks a 30% slide from October’s record highs above $126,000, deepening fears that the market’s post-halving euphoria is giving way to a broad-based correction.
Analysts point to a mix of factors driving the sell-off from waning hopes of U.S. interest rate cuts and ETF outflows, to heavy liquidations of leveraged bets and profit-taking by large holders. The sharp reversal has also pushed Bitcoin’s futures curve below spot prices, a signal of growing risk aversion among traders and institutions alike.For now, market watchers are divided: some see this as the early stage of a “crypto winter” resurgence, while others believe the reset could pave the way for a healthier rebound once excess leverage and speculative froth clear out.“Bitcoin fell below $90,000 for the first time in seven months, influenced by factors such as uncertainty around potential U.S. interest rate cuts, broader negative equity market sentiment, and large holders reducing their positions,” said Ashish Singhal, Co-founder of CoinSwitch. “While some point to death cross, similar patterns in the past have also preceded recoveries.”
The carnage has spread beyond Bitcoin, with Ethereum struggling to defend the $3,000 level and XRP’s profitability dropping to yearly lows, signaling uneven pressure across major cryptocurrencies.”Crypto market has entered a phase where sentiment, structure, and psychology are colliding,” said Avinash Shekhar, Co-Founder & CEO of Pi42. “ETF outflows, whale-driven short positioning, and thinning liquidity have turned a routine correction into a deeper drawdown. The real question now is whether this slide marks the early signs of a crypto winter or whether the market is clearing the path for an eventual rebound.”The correction has been amplified by ETF outflows and institutional profit-taking, notably by large players such as BlackRock, according to Delta Exchange’s Riya Sehgal. However, not all institutional players are retreating—Strategy recently purchased 8,178 Bitcoin worth $835 million, helping offset some of the selling pressure.
“Institutional conviction remains strong,” said Edul Patel, CEO of Mudrex. “On-chain data also shows rising activity from short-term holders, a pattern often seen near market bottoms. Historically, such phases have preceded strong reversals, suggesting that a shift in momentum may be approaching.”
Technical analysts are now watching the $89K–$91K support zone closely. If Bitcoin fails to hold this level, attention will shift to $75,000 as the next major support, according to Vishwanath.
For now, market participants are being urged to exercise caution. “Stay cautious, stay patient, and trade with discipline,” Vishwanath advised, noting that while long-term structures remain intact, deep corrections have historically reset leverage before major rebounds.
Singhal said for some participants, the pullback may also be viewed as an opportunity to accumulate at lower levels.
The next few trading sessions will be critical in determining whether buyers emerge with conviction or if the crypto winter fears deepen their grip on the market.
