BTC Dips Under $90K, Death Cross Sparks Intensified Market Fear

Bitcoin Falls Below $90K Amid Death Cross, Extreme Fear Returns

Bitcoin slipped below $90,000 Tuesday on Coinbase, dropping to $89,420, its lowest level since February and just six weeks after peaking at $126,250. The steep reversal has wiped out all 2025 gains and pushed market sentiment to extreme lows.

The decline accelerated after Bitcoin failed to reclaim $93,700 over the weekend, breaking below its 200-day moving average and triggering a death cross between the 50-day and 200-day moving averages. Historically, this signal coincides with extended selloffs when liquidity dries up and ETF inflows stall—both of which are evident in the current market.

Flows into U.S. spot ETFs, which absorbed over $25 billion earlier this year, have stalled for nearly two weeks amid fears that tariffs could fuel inflation and delay Federal Reserve rate cuts. Corporate balance-sheet buyers have also paused, while retail stress deepens: the Crypto Fear & Greed Index dropped to 11, the lowest since the 2022 bear market. Social dominance for Bitcoin has surged, a pattern typically seen near local capitulation as traders rotate from altcoins into BTC.

Analysts caution that failure to reclaim $93,000 could expose a liquidity gap toward $86,000–$88,000. Yet some investors, including Dan Tapiero of 50T Holdings, view the current volatility as short-term noise, noting that Bitcoin’s fundamentals and growing institutional interest remain strong