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

The price of Bitcoin has plummeted to 89,420 dollars, marking a sharp correction that erased 2025 gains and triggered extreme fear signals in the market. Starting the new week with heavy 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 has now entered a strong pullback phase. Over the weekend, Bitcoin was unable to regain the support level of 93,700 dollars and fell below the 200-day moving average level. Additionally, the 'death cross' signal from the intersection of the 50-day and 200-day trend lines has increased selling pressure, deepening investors' concerns.

This technical situation is noteworthy as it could lead to more severe corrections, especially during periods of weak liquidity. It is also important to remember that over 25 billion dollars had been inflowed into U.S. spot Bitcoin ETFs in the first half of the year, but this flow has nearly come to a halt in the last two weeks. Analysts point out that concerns over the Trump administration's tariff policy potentially creating a new wave of inflation and the Federal Reserve (Fed) delaying expected interest rate cuts have diminished investors' risk appetite.

The slowdown in institutional purchases has further weakened the current cryptocurrency market outlook. The Extreme Fear Index in the crypto market has dropped to a level of 11, marking the lowest point seen since the 2022 bear market. Social media data also indicate that the social dominance of Bitcoin is rapidly increasing; this typically occurs when investors tend to shift from altcoins back to Bitcoin.

Analysts emphasize that if the 93,000 dollar level cannot be reclaimed in the short term, a liquidity gap could open towards the range of 86,000 to 88,000 dollars. However, it is also known that such sharp sentiment shifts can often trigger short-term relief rallies. The possibility of a similar recovery is also on the table if ETF outflows stop and macro data soften.

On the other hand, Dan Tapiero, founder of 50T Holdings, views short-term volatility as noise while stating that the long-term outlook remains strong. Tapiero noted that the demand of some investors for stablecoins and tokenized assets would return, and that the fundamental dynamics of Bitcoin have not been disrupted.