Bitcoin Drops to Seven-Month Low Under $90K

Source: CryptoNewsNet Original Title: Bitcoin Drops to Seven-Month Low Under $90K Original Link: The crypto market outlook has continued to worsen by the day, with Bitcoin dropping to below $90,000 for the first time since April Tuesday morning.

Amidst the sell-off, Bitcoin is down 4.5% over the past 24 hours. The decline is likely due to recent movements from Mt. Gox wallets, with roughly 185.5 BTC worth approximately $16.8 million transferred. However, the recent uptick in buying pressure has pushed Bitcoin’s price up 2% over the past five hours, recovering from an intraday low of $89,368 to $91,474. The total market capitalization of all cryptocurrencies has dropped 20% from $4 trillion on October 14 to $3.2 trillion as of Tuesday.

Market Enters “Risk-Management” Phase

Adding pressure to the market decline is deteriorating market sentiment, driven partly by reduced institutional demand.

Spot Bitcoin ETFs have seen outflows of $2.59 billion in November, nearing February’s $3.56 billion total. Likewise, spot Ethereum ETFs saw a net outflow of $728.57 million last week, the third-largest on record behind May’s drop of $787.74 million and September’s $795.56 million.

The exodus of capital from exchange-traded funds comes as the market shifts from a momentum phase to a risk-management phase. According to industry experts, profit protection from funds that entered earlier in the cycle and portfolio rebalancing after crypto’s exceptional rally compared to traditional assets since 2023 are two major catalysts driving the outflows.

Institutions aren’t exiting because of negative long-term sentiment. Instead, they’re responding to a lack of catalysts, slowing ETF inflows, and a temporary shift toward risk-off positioning.

Macro clarity remains pivotal in restarting the recovery and quashing bear market possibilities.

How Low Can Bitcoin Go?

While Bitcoin can go lower, the downside still appears relatively limited. If the bearish flows persist, Bitcoin could revisit the $82,000 to $85,000 range, which is where both long-term holder cost basis and ETF inflow clusters sit.

The chances of Bitcoin hitting $115,000 before $85,000 have dropped from 66.7% on November 13 to 25% on Tuesday, according to data from prediction market analytics.