Bitcoin Drops to Seven-Month Low Under $90K

Bitcoin has fallen below $90,000 for the first time since April, marking a seven-month low as market sentiment deteriorates. A notable outflow of $2.59 billion from spot Bitcoin ETFs occurred in November, highlighting profit-taking and portfolio rebalancing by investors. Speculations suggest that if bearish trends continue, Bitcoin may revisit the $82,000 to $85,000 range. The overall cryptocurrency market capitalization has declined significantly, dropping from $4 trillion to $3.2 trillion since mid-October. This downturn is exacerbated by reduced institutional demand and increased macroeconomic uncertainty. Analysts report that last week's outflows from Bitcoin and Ethereum exchange-traded products reached record levels, prompting a shift from a momentum-oriented market to one focused on risk management. Bitcoin's recent performance has led to a 'death cross' technical indicator, suggesting further bearish sentiment ahead. Despite the potential for further declines, some experts believe that the downside for Bitcoin may be limited, with key support levels identified around $82,000 to $85,000 where long-term investors might step in.

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