Bitcoin Falls Below $90K as Death Cross Sparks Extreme Fear
Bitcoin dropped below $90,000 Tuesday on Coinbase, hitting $89,420, its lowest since February. This decline comes just six weeks after reaching a record $126,250, erasing all 2025 gains and sending market sentiment into “extreme fear.”
The selloff accelerated after Bitcoin 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, such a signal coincides with multi-week drawdowns when liquidity dries up and ETF inflows stall—both conditions present in the current market.
U.S. spot ETF inflows, which took in over $25 billion earlier this year, have flatlined for nearly two weeks amid fears that tariffs could drive inflation higher and delay Federal Reserve rate cuts. Corporate balance-sheet buyers have paused, while retail stress mounts: the Crypto Fear & Greed Index fell to 11, the lowest since the 2022 bear market. Bitcoin’s social dominance has spiked, a pattern often seen near local capitulation as traders rotate from altcoins into BTC.
Analysts warn that failing to reclaim $93,000 could open a liquidity gap toward $86,000–$88,000. Investors such as Dan Tapiero of 50T Holdings view the short-term volatility as “just noise,” citing Bitcoin’s strong fundamentals and growing institutional interest.
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