Bitcoin has plunged to around $90,000 per coin, marking a significant downturn from its October peak of $126,000, as uncertainty surrounding the Federal Reserve intensifies fears of a price crash. The bitcoin price has experienced a significant decline of nearly 30% from its peak last month, pushing it into bear market territory and erasing $1 trillion from the overall $3.2 trillion crypto market. This has led to heightened panic among traders, who are increasingly concerned about the potential realization of a bitcoin crash nightmare scenario. As a surprising signal emerges from the stock market, analysts are cautioning that the crypto market may be on the brink of shedding another $1 trillion. “The crypto market capitalisation has fallen by more than 6% over the last day to $3.26 trillion, its lowest level since early July,” stated Alex Kuptsikevich. “The crypto market has established lower local lows, affirming the downward trend. Since its peak on October 7, the crypto market capitalisation has plummeted by over $1 trillion, or 24%, signaling the onset of a bear market. If the rules of stocks apply here, then we should prepare for a further decline of approximately 20%, or around $1 trillion.”
“Bitcoin could absolutely drop to $80,000 to $85,000 during this period of weakness,” Arthur Hayes stated. Hayes attributed the decline in bitcoin to a liquidity crunch orchestrated by the U.S. Federal Reserve and Treasury. He suggested that if dollar liquidity conditions improve, bitcoin could rebound to over $200,000 before the year concludes, describing it as “the free-market weathervane of global fiat liquidity.” The recent drop in bitcoin price below $90,000 has been characterized by many in the crypto community as a fleeting setback rather than a significant shift, with the decline viewed as simply a ripple effect from the stock markets. “The recent bitcoin price movement is less about bitcoin itself and more about the wider markets,” stated Danny Scott. “A number of traditional financial market worries have been at play—tech sell-offs, concerns around AI, and the Fed’s increasingly bearish stance on a rate cut at the next meeting.” From within the bitcoin industry, however, the status quo remains unchanged. “The fundamentals continue to grow from strength to strength,” Scott said, highlighting the recent rollout by payments company Block of its support for bitcoin for its Square customers as a testament to bitcoin’s improving backdrop.
Bitcoin has now wiped out its year-to-date gains, as the recent decline below $100,000 has left traders feeling more uncertain than ever. “Once the price fell below the crucial $100,000 level, it confirmed a descending channel that had been forming since mid-October, right after the massive liquidations,” Arthur Azizov stated. “I pay close attention to the $89,000–$94,000 zone as this is where liquidity is concentrated right now.” If sellers maintain their pressure, the most concerning outcome could be a drop back to the April 2025 range of $72,000–$74,000, which marked the beginning of a significant bullish momentum that propelled bitcoin close to $127,000, establishing a new all-time high.
Like many in the bitcoin and crypto space, Azizov maintains an optimistic outlook for the long-term, yet he is feeling the strain of the declining market. “Looking ahead into the year-end and the beginning of 2026, I still see what’s happening now as a healthy consolidation until a clear bearish signal appears,” Azizov stated. “Despite the daily decline in recovery prospects, there remains a glimmer of hope.”