Bitcoin decline deepens, dousing 2025 gains: What’s next?

Bitcoin dropped below $90,000, intensifying a month-long decline that has wiped out its 2025 gains and shaken confidence across the digital-asset space.

The leading cryptocurrency fell by up to 2.4% during Asian trading hours, extending its fall from a peak of over $126,000 in early October, Bloomberg reported . At last check, Bitcoin hovered at around $89,847. See below.

The last time Bitcoin traded below this level — eventually plunging to $74,400 in April — was when President Donald Trump’s tariff plans rattled global financial markets.

This latest downturn comes amid escalating economic pressures, including renewed concerns about interest rates and overvaluations in speculative markets. As traders reassess the likelihood of a Federal Reserve rate cut in December and stock markets pull back from recent peaks, risk sentiment has soured, leaving Bitcoin exposed to further losses.

$19b selloff, liquidations shake investor confidence

The crypto market has struggled to find stability since an October selloff triggered over $19 billion in liquidations, erasing more than $1 trillion in market value.

While institutional holders have largely remained steadfast, retail participation and buying on dips have faded, especially among speculative altcoins.

Recent data from Coinglass shows nearly $950 million in long and short positions liquidated in the past 24 hours.

Digital-asset treasuries, including Michael Saylor’s Strategy Inc., which accumulated large crypto holdings earlier this year, are under increasing pressure to reevaluate their positions as prices fall below critical support levels.

What’s next

Options traders are betting on further declines, with demand for downside protection at the $85,000 and $80,000 levels dominating recent market activity.

Expect individual investors, corporates and governments to take advantage of the dip and accumulate Bitcoin.

For example, El Salvador acquired 1,091 Bitcoin, valued at over $100 million, adding it to an ever-growing crypto reserve. Since making Bitcoin legal tender in 2021, the country has consistently purchased Bitcoin in downturns, aiming to build a long-term digital asset treasury.

With this latest acquisition, El Salvador now holds a total of 7,474 BTC, worth approximately $688 million, further solidifying its position as one of the largest Bitcoin holders among nations.