Bitcoin has surpassed 90 thousand dollars, and extreme fear prevails in the markets.

The price of Bitcoin has dropped to 89,420 dollars, marking a sharp correction that wiped out 2025 gains and triggered extreme fear signals in the market. Starting the new week with sharp selling, Bitcoin fell below 90,000 dollars, negatively impacting investor psychology.

Approximately six weeks ago, Bitcoin reached a record high of 126,250 dollars, but it has entered a strong retracement phase with the current levels. Failing to regain the support at 93,700 dollars over the weekend, Bitcoin dropped below the 200-day moving average level. Additionally, the 'death cross' signal, where the 50-day and 200-day trend lines intersect, has increased selling pressure, deepening investor concerns.

This technical outlook is particularly noteworthy as it may lead to sharper corrections during periods of weak liquidity. It’s important to recall that over 25 billion dollars had flowed into U.S. spot Bitcoin ETFs in the first half of the year; however, this influx has nearly come to a halt in the past two weeks. Analysts indicate that concerns over the Trump administration's tariff policies potentially creating a new wave of inflation and the Federal Reserve's (Fed) potential delay in expected interest rate cuts have decreased investors' risk appetite.

The slowdown in institutional purchases has further weakened the current crypto market outlook. The Crypto Fear & Greed Index has dropped to 11, marking the lowest level seen since the 2022 bear market. Social media data also shows that Bitcoin's social dominance is rapidly increasing; this situation typically arises when investors tend to shift from altcoins to Bitcoin.

Analysts emphasize that if the 93,000 dollar level is not regained in the short term, a liquidity gap toward the 86,000 to 88,000 dollar range could open up. However, it is also known that such sharp sentiment changes can often trigger short-term relief rallies. If ETF outflows stop and macro data softens, a similar recovery possibility may remain on the table.

On the other hand, Dan Tapiero, founder of 50T Holdings, considers short-term volatility as noise while asserting that the long-term outlook remains strong. Tapiero stated that demand for stablecoins and tokenized assets will bounce back, noting that the fundamental dynamics of Bitcoin have not been disrupted.