Bitcoin Dips Below $90K as Death Cross Fuels Extreme Fear
Bitcoin fell under $90,000 Tuesday on Coinbase, reaching $89,420, its lowest since February. The drop comes just six weeks after the record high of $126,250, wiping out all 2025 gains and sending market sentiment into “extreme fear.”
The decline accelerated after BTC failed to reclaim $93,700 over the weekend, breaking below its 200-day moving average and triggering a death cross between the 50-day and 200-day moving averages. Historically, this pattern often signals multi-week drawdowns when liquidity thins and ETF inflows stall—both evident in the current environment.
Flows into U.S. spot ETFs, which absorbed over $25 billion earlier this year, have been flat for nearly two weeks amid concerns that tariffs could spark inflation and delay Federal Reserve rate cuts. Corporate balance-sheet buyers have paused, while retail sentiment deteriorates: the Crypto Fear & Greed Index hit 11, the lowest since the 2022 bear market. Bitcoin’s social dominance has surged, a pattern typically seen near local capitulation as traders rotate from altcoins into BTC.
Analysts warn that failure to reclaim $93,000 could open a liquidity gap toward $86,000–$88,000. Some investors, including Dan Tapiero of 50T Holdings, consider the short-term volatility “just noise,” emphasizing Bitcoin’s strong fundamentals and growing institutional interest.
