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

The price of Bitcoin has fallen to $89,420, marking a sharp correction that wiped out gains for 2025 and triggered extreme fear signals in the market. Starting the new week with aggressive sell-offs, Bitcoin slipped below $90,000, negatively impacting investor psychology.

About six weeks ago, Bitcoin set a record high of $126,250, but it has since entered a strong retracement phase. Over the weekend, Bitcoin failed to reclaim the $93,700 support level and fell below the 200-day moving average. Additionally, the 'death cross' signal formed by the intersection of the 50-day and 200-day trend lines has increased selling pressure, deepening investor concerns.

This technical outlook is noteworthy as it could lead to sharper corrections, especially during periods of weak liquidity. It is important to note that more than $25 billion had flowed into US spot Bitcoin ETFs in the first half of the year; however, this inflow has nearly come to a halt over the past two weeks. Analysts cite concerns that the Trump administration's tariff policy could create a new wave of inflation and that the Federal Reserve (Fed) may delay anticipated interest rate cuts, causing investor risk appetite to diminish.

The slowdown in institutional buying has further weakened the current cryptocurrency market outlook. The Extreme Fear Index in the crypto market has dropped to 11, registering the lowest level since the bear market of 2022. Social media data also indicate that Bitcoin’s social dominance is rapidly increasing; this usually occurs during times when investors tend to shift away from altcoins toward Bitcoin.

Analysts emphasize that if the $93,000 level cannot be reclaimed in the short term, a liquidity gap may open towards the $86,000 to $88,000 range. However, it is also known that such sharp sentiment shifts often trigger short-lived relief rallies. There is potential for a similar recovery if ETF outflows cease and macro data soften.

On the other hand, 50T Holdings founder Dan Tapiero considers the short-term volatility as noise while stating that the long-term outlook remains strong. Tapiero mentioned that demands from some investors for stablecoins and tokenized assets would return, asserting that Bitcoin's fundamental dynamics have not been disrupted.