Bitcoin Plunges Below $90,000 Amid Post-Black Friday Market Bleed

The crypto market mood has shifted drastically from October’s “Uptober” euphoria to a grim, fear-driven downturn. Bitcoin, the market bellwether, has been hit hardest, slicing through key support levels and leaving investors staring at a sea of red.

Since the infamous Black Friday crash in October, sparked by geopolitical shocks including President Trump’s tariff tweets, the market has seen nearly $20 billion in open interest vanish within hours. Even with the end of the US government shutdown, Bitcoin could not find stability, breaking below the $95,000 support last Friday and dipping under $90,000 for the first time in several months.

Why Bitcoin Is Bleeding: Macroeconomic and Technical Factors

The sell-off is not just a technical blip; it reflects macroeconomic realities:

• Renewed trade tensions
• The Federal Reserve’s hesitation on rate cuts
• A death cross formation on technical charts

Volume metrics also highlight institutional retrenchment, with spot ETFs seeing massive outflows. Heavyweights like BlackRock and Fidelity pausing purchases have triggered panic among retail investors, contributing to sharp downward pressure.

Bear vs. Bull: Market Perspectives

Bear Case:

• Bitcoin has erased its year-to-date gains
• A 30% drop from its peak and breach of key moving averages signals a traditional bear market
• Failure of the $88,000 support could open the door to a retest of $75,000

Bull Case:

• Market veterans compare the flush-out to mid-cycle corrections in 2017 and 2021, often precursors to parabolic growth
• On-chain data shows long-term holders slowing sales, suggesting fundamentals remain intact
• The recent deleveraging may act as a reset for healthier market growth

Investor Guidance: Traders vs. Long-Term Holders

For traders, the trend is currently down. Catching a falling knife is risky, and high volatility means risk management is critical. Reducing exposure isn’t panic: it’s prudent.

For long-term investors (12–18 months horizon), panic selling is historically counterproductive. Selling now provides liquidity to institutions likely to buy Bitcoin at a discount. Bitcoin at $89,000 is mathematically more attractive than its $126,000 ATH, assuming belief in digital gold persists.

“The market is designed to transfer wealth from the impatient to the patient,” analysts note.

Outlook: Is the 2025 Bull Run Dead?

The 2025 bull run is on life support, but not dead. Recovery hinges on Bitcoin reclaiming $95,000 soon to halt further losses. Until then, experts advise investors to:

• Sit tight
• Close the charts
• Exercise patience, as the most profitable trades often require restraint