BTC Dips Below $90K as K33 Flags Deepest Correction Since 2017

Bitcoin Retreats Below $90K, Analyst Sees $84K–$86K as Possible Floor

Bitcoin’s brief outperformance on Tuesday proved short-lived, as the cryptocurrency slid 4% back below $90,000, with ether ETH$2,834.89 falling 6.5% under $3,000. The prior day’s gains were notable, as BTC climbed even while U.S. stocks pulled back—a divergence that has been rare in recent months.

Crypto-related equities mirrored the decline. MicroStrategy (MSTR) dropped more than 8% to a one-year low, while Circle (CRCL), BitMine (BMNR), Bitfarms (BITF), and Hive Digital (HIVE) also faced losses. Meanwhile, the Nasdaq eked out a 0.2% gain shortly after midday.

Investor sentiment remains muted. The Crypto Fear & Greed Index remains in “Extreme Fear,” reflecting caution after BTC’s steep early-October highs.

Vetle Lunde, head of research at K33, said the current drawdown—nearly 30% over 43 days—is among the most severe since March 2017. Persistent ETF outflows have compounded the pressure, with $2.3 billion withdrawn from U.S.-listed spot BTC ETFs over the past five sessions, according to Farside Investors.

“BTC has fallen below the average cost basis of U.S. BTC ETFs,” Lunde noted. “If this drawdown mirrors the two deepest corrections of the past two years, a bottom may emerge between $84,000 and $86,000. If not, revisiting April lows and MicroStrategy’s $74,433 average entry is possible.”

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