Bitcoin’s sharp selloff intensified Tuesday, Hong Kong time, with prices on Coinbase plummeting below the $90,000 mark, wiping out all gains made in 2025 and driving market sentiment to one of its lowest points this cycle.
The drop to $89,420 marks Bitcoin’s lowest level since February and represents a dramatic reversal, coming just six weeks after the digital asset peaked at an all-time high of $126,250.
The recent slide accelerated after Bitcoin failed to hold the key support level of $93,700 over the weekend. This breach also saw the price fall below its 200-day moving average and triggered a “death cross”—a bearish technical signal where the 50-day moving average crosses below the 200-day trendline.
The market pressure is compounded by evaporating liquidity and a halt in inflows into U.S. spot Bitcoin ETFs. These funds, which absorbed over $25 billion earlier this year, have seen flat activity for nearly two weeks.
The pause in buying comes amid broader economic anxiety that the Trump administration’s tariff agenda could fuel inflation, potentially delaying expected rate cuts by the Federal Reserve. Corporate balance-sheet buyers have also reportedly paused their aggressive accumulation efforts.
The mood among retail investors has soured significantly. The widely watched Crypto Fear & Greed Index dropped to 11 on Monday, its lowest reading since the 2022 bear market, signaling “extreme fear.”
In a pattern often preceding market capitulation, the “social dominance” for Bitcoin—its share of market-wide crypto chatter—has spiked, suggesting traders may be abandoning altcoins to focus on the benchmark asset.
Analysts warn that a failure to swiftly reclaim the $93,000 level could open the door for a further drop into a liquidity pocket between $86,000 and $88,000.
Despite the short-term turmoil, some investors maintain a confident long-term view. Analysts note that sentiment shocks of this magnitude sometimes precede short-term relief rallies, particularly if ETF outflows stabilize and macro economic data offers a less hawkish outlook soon.
