Bitcoin Drops to Seven-Month Low Under $90K

Bitcoin has fallen below $90,000 for the first time since April, reaching a seven-month low. This downturn, with a 4.5% decline over 24 hours, is attributed to profit-taking and portfolio rebalancing among institutional investors, resulting in significant outflows from Bitcoin exchange-traded funds (ETFs). In November alone, spot Bitcoin ETFs have seen $2.59 billion in outflows, nearing the $3.56 billion seen in February. This trend indicates a shift from a momentum phase to a risk-management phase, primarily driven by macroeconomic uncertainties. Recent transfers from Mt. Gox wallets have further pressured the market. Despite a brief recovery, technical signals like a death cross suggest a bearish trend may be developing. If selling pressure continues, Bitcoin could drop to the $82,000 to $85,000 range, which aligns with long-term holder bases and ETF inflow clusters. The overall cryptocurrency market capitalization has decreased by 20% since mid-October, reflecting deteriorating market sentiment and reduced institutional demand.

Source 🔗