Bitcoin Falls Below $90K Amidst Market Uncertainty and Liquidation Concerns

Bitcoin's value fell below $90,000 this week, a level not seen in seven months, trading around $90,700. This is approximately 25% lower than its recent peak of over $126,000 on October 6. A significant liquidation event on October 10 continues to impact market stability.

Analysts' Perspectives

Tom Lee from BitMine highlighted the pressure from recent liquidations and uncertainty regarding potential US Federal Reserve rate cuts in December.
Lee suggested that seller exhaustion and technical indicators might indicate an approaching bottom.
Matt Hougan from Bitwise Asset Management described the current pricing as a "generational opportunity" for long-term investors, despite economic concerns and geopolitical tensions.

Selling Dynamics

XWIN Research identified short-term holders as the primary sellers in the recent downturn.
The Short-Term Holder Spent Output Profit Ratio often dropped below 1, indicating sales at a loss by these holders.
Coins younger than three months dominated the selling volume during the decline.
Long-term holder behavior aligned with routine profit-taking rather than panic selling.

Market Analysis

Market Influences

Outflows from exchange-traded funds (ETFs) and whale sales added downward pressure.
Geopolitical tensions introduced additional risk, with Bitcoin acting as an early indicator for broader market movements.

Future Outlook

Lee predicts a Bitcoin rebound if stocks rally, potentially reaching new highs by year-end.
Hougan sees an opportunity for investors willing to hold for at least a year.
Traders are divided: some see signs of market fatigue, while others warn of further declines due to macroeconomic factors.