Bitcoin has plunged below the $90,000 mark, sparking a fresh wave of volatility across the cryptocurrency market and sending digital assets to their lowest levels in months. The decline marks the end of a two-year bullish trend, which had seen the world’s largest cryptocurrency consistently climb higher until recent technical signals triggered renewed selling.
The downturn accelerated after Bitcoin closed last week beneath its 50-week moving average, a critical long-term indicator closely watched by traders and analysts. This breach triggered a cascade of sell orders and intensified the correction that had begun earlier in October. Although Bitcoin briefly rebounded to around $90,391 following the drop, the broader trajectory of the market has turned decisively downward. The coin had reached a high of $125,245.57 on the morning of October 5, highlighting the sharp scale of the reversal.
Bitcoin is now trading over 30% below its recent highs, reflecting a combination of factors including profit-taking by long-term holders, global risk aversion, and tighter liquidity conditions in financial markets. Analysts suggest that these pressures are unlikely to ease in the short term, as broader economic uncertainty continues to weigh on speculative assets.
Ethereum, the second-largest cryptocurrency by market capitalization, has mirrored Bitcoin’s decline, falling below the $3,000 mark. Traders are closely monitoring the $2,300 region, near the 200-week moving average, as a potential support level, while some market observers warn that a deeper drop toward $1,700 cannot be ruled out if bearish momentum persists.
The overall digital asset landscape is also under stress. Total cryptocurrency market capitalization fell another 4% over the past 24 hours, reaching $3.07 trillion, the lowest level seen since early May. Bitcoin, Ethereum, and XRP have been the main drivers of this decline, each experiencing losses exceeding 5%. A few altcoins such as Monero, Tron, and Bitcoin Cash have performed slightly better, but analysts note that this relative resilience may reflect delayed exposure to broader market pressures rather than underlying strength.
Underlying the recent selloff is a shift in expectations surrounding U.S. monetary policy. Investors had anticipated a higher likelihood of a Federal Reserve rate cut in December, which would typically support riskier assets. However, recent weakness in major equity indices and a reassessment of economic conditions have dampened risk appetite. This change has left highly speculative markets, including cryptocurrencies, particularly vulnerable to continued declines.
The October downturn follows a period of significant liquidations, which erased over $19 billion in leveraged positions and wiped more than $1 trillion from token valuations. The correction has challenged earlier optimism among some institutional investors, who had expected spot Bitcoin ETFs to stabilize prices and reduce volatility. The current market environment demonstrates that even regulated investment vehicles provide limited protection against the inherent swings of the cryptocurrency market.
As Bitcoin and major altcoins continue to navigate this turbulent phase, market participants are keeping a close eye on technical indicators, macroeconomic signals, and investor sentiment. While some analysts view the current levels as a potential buying opportunity, others caution that volatility is likely to persist until broader market conditions stabilize.
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