Bitcoin Drops Below $90,000 as Extreme Fear Dominates the Market
Bitcoin fell sharply to $89,420 — its lowest level since February — marking a dramatic reversal just six weeks after setting an all-time high near $126,250. The sudden drop has intensified concerns across the crypto sector as sentiment turns overwhelmingly negative.
Death Cross Signals a Shift in Momentum
Analysts attribute the steep decline to the formation of a “death cross,” a bearish technical pattern that occurs when the short-term moving average falls below the long-term one. The signal reinforced expectations of prolonged downside pressure after a period of weakening momentum.ETF Inflows Slow as Inflation Fears Mount
Another contributing factor is the noticeable decrease in U.S. Bitcoin ETF inflows. Rising concerns over inflation and tightening financial conditions have tempered investor appetite, reducing demand for spot BTC products and amplifying the market’s vulnerability to sharp sell-offs.Altcoins Follow Bitcoin’s Decline
Major cryptocurrencies including Ether and Solana also turned lower. Both assets experienced heightened volatility as the broader market reacted to Bitcoin’s decisive break below the psychologically important $90,000 level.Crypto Fear Index Drops to ‘Extreme Fear’
The crypto fear and greed index plunged to 11, placing the market firmly in the “extreme fear” zone. Historically, such readings reflect deep investor uncertainty and a willingness to reduce exposure until conditions stabilize.Editorial Team — CoinBotLab