Bitcoin Falls Below $90,000 for the First Time in Seven Months

Bitcoin falls below $90,000, marking a seven-month low at $89,390.

The price of digital gold has dropped below $90,000, reaching a seven-month low at $89,390. At the time of writing, the asset is trading at $89,500, having decreased by 6% over the past day.

The decline is attributed to several factors. Institutional investors are locking in profits ahead of the year-end. Over the past three weeks, net outflows from US spot bitcoin ETFs have exceeded $3 billion (data from SoSoValue).

“Breaking the $90,000 mark is a significant psychological moment that highlights the market’s fragility,” said BTC Markets analyst Rachel Lucas.

Short-term traders and funds adjusting their positions are also putting pressure on the price. Meanwhile, long-term holders remain confident in the asset, according to Kronos Research IT Director Vincent Liu.

“The long-term value of bitcoin as digital gold remains unchanged,” he noted.

Other reasons for the decline cited by experts include:

1. Reduced liquidity. This is caused by the US government shutdown and uncertainty surrounding the December decision of the Fed on interest rates. 
2. Seasonal factors. At the end of the year, investors may sell assets for tax optimization, increasing price pressure.

Key Levels and Forecasts

Analysts see the next support zone in the $85,000–87,000 range. According to Lucas, the next important level is $85,000, with a critical level at $80,000. Breaching this could push the price towards $74,000.

To restore confidence, buyers need to push quotes back above $90,000. Market sentiment remains subdued: the Fear and Greed Index stands at 11.

Opinions: Bitcoin Finds a Bottom and Prepares for Growth

BitMine Chairman Tom Lee and Bitwise CIO Matt Hougan believe the price of the leading cryptocurrency will bottom out this week. They view current levels as a favorable opportunity for long-term investors.

In an interview with CNBC, Lee mentioned signs of seller “exhaustion.” The expert predicts that by the end of the year, digital gold will not only recover but also reach a new all-time high amid a stock market rally.

Hougan concurred with his colleague, describing the current situation as a “gift for long-term investors” and a “once-in-a-generation opportunity.” According to him, bitcoin was the first to react to economic risks and will be the first to recover.

Earlier, Bernstein researchers predicted bitcoin would rise to $200,000 by 2027.