Bitcoin Falls Below $90K as Extreme Fear Grips the Crypto Market

With prices just below $90,000, Bitcoin has continued its downward trend. Altcoins like Ethereum and Solana are unable to buck the trend. Will Bitcoin’s crypto year 2025 end in losses?

Cryptocurrency markets had already suffered significant losses over the weekend, but things are about to get worse: Bitcoin is trading just below $90,000 on Tuesday morning, having failed to break through the next support level.

Ethereum has fallen below the critical $3,000 mark, and Solana’s $140 level proved to be no stop. Market sentiment indicators point to “extreme fear” as the year draws to a close, and investors are trembling: How much further will Bitcoin fall, or is there any hope of a trend reversal?

At current price levels, Bitcoin has erased all of its gains this year

At the turn of the year 2024/25, BTC was trading at around $93,000. Analysts, such as those at QCP Capital, had predicted in their report yesterday that the current Bitcoin downturn could be halted at $92,000. Now they are focusing on the $88,000 and $74,500 levels, which they expect Bitcoin to cling to.

Theories based on four-year Bitcoin cycles are currently being widely discussed. These theories are based on the Bitcoin halvings , which occur every four years. Following the halvings in 2012, 2016, and 2020, the Bitcoin price curve subsequently reached new record highs several months later – but significant losses followed 12 to 18 months later. The most recent Bitcoin halving took place in April 2024, and now, almost exactly 18 months later, the dynamics appear to be repeating themselves.

– Popular Ethereum advocate Tom Lee uses the X to remind people of “supercycles.” In 2017, he recommended Bitcoin to clients of his company Fundstart when prices were around $1,000. Since then, the BTC price curve has corrected sharply nine times, six times by more than 50 percent and three times by 75 percent. But ultimately, according to Lee, Bitcoin investors from 2017 have multiplied their capital a hundredfold. Now, he says, it’s time to get on board for such an Ethereum “supercycle” and remain calm.

Lee, a popular television pundit in the US, is now a leading figure at the Ethereum company Bitmine Immersion (BMNR). Bitmine announced yesterday in a press release that it had increased its reserves by 54,156 ETH last week for approximately $170 million. It now holds a total of over 3.5 million Ethereum with a market value of about $10 billion, making Bitmine Immersion the second-largest crypto company worldwide, behind Strategy .

Both Strategy, with its focus on Bitcoin, and Bitmine, with its Ethereum focus, have maintained their tactic of regularly buying large amounts of BTC and ETH, respectively, in recent days. However, this strategy is in danger of collapsing, as critics have been warning for months. Tom Lee of Bitmine and Michael Saylor of Strategy, their leading figures, are currently conspicuously silent and are likely reviewing their internal funding strategies.

Many had hoped that Bitcoin ETFs and similar financial products would act as a bulwark against negative price developments. However, CoinShares’ latest weekly report paints a sobering picture: Last week, over $2 billion in capital was withdrawn from Bitcoin and Ethereum ETFs and related crypto investment instruments worldwide. And yesterday’s results offer little encouragement: According to data from SoSo, Bitcoin ETFs suffered an outflow of over $250 million at the start of the week, while Ethereum ETFs experienced a loss of $182 million.

Popular smaller cryptocurrencies like Bitcoin and Ethereum are deep in the red: Solana’s weekly losses now total 17 percent, Cardano 20 percent, and XRP (Ripple) 12 percent. Binance Coin (BNB) fares slightly better than average with a 7 percent weekly loss, while Tron (TRX), with a “mere” 3 percent decline, even shows some resistance to the overall market trends. From a German perspective, IOTA , with a 15 percent weekly loss and a new yearly low below $0.13, is among the biggest losers.

Conclusion: Is this the end for Bitcoin, Ethereum, and other cryptocurrencies?

Fear is palpable in the crypto markets; support levels are crumbling one after another, and it’s unclear where any “white knights” might emerge. Just at the beginning of October, Bitcoin celebrated an all-time high of $126,000, a level now 30 percent lower. This euphoria quickly evaporated, partly due to infighting in US politics. The US government shutdown has ended, and the SEC has resumed its crypto-friendly policies.

However, altcoins like Solana, Cardano, and XRP, which should have benefited most from this, are plummeting unimaginatively into the red. Meanwhile, Bitcoin, the leading cryptocurrency, is struggling to establish at least a temporary low, and Ethereum, the second-largest, is faring no better. If the momentum shifts toward capitulation, 2025 could prove to be a pivotal year for Bitcoin and other cryptocurrencies.

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(Featured image by Traxer via Unsplash)

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