Panic Warning: Bitcoin Crashes Under $90K – Early Warning of Risk-Asset Meltdown?

Bitcoin slipped under the $90,000 mark this week for the first time in seven months, deepening a sell-off that has spread across the crypto market and raising fresh concerns about whether digital assets are once again acting as an early warning signal for broader risk assets.

The move comes at a time when the global crypto market has already been under pressure.

According to CoinGecko data, total market capitalization dropped 2% in 24 hours to $3.08 trillion, with high but fading trading activity at $202 billion.

Bitcoin’s decline has been steady across timeframes: down 2.5% daily and 12.7% on the week, and losing key support levels that traders have been watching for months.

Ethereum followed the same pattern, falling 14% over the week. XRP recorded an even steeper seven-day decline of over 17%.

Additionally, the Bitcoin Fear and Greed Index now sits in “Extreme Fear.”

Bitcoin ETFs Struggle to Recover as $3B November Outflows Mount

United States-listed spot Bitcoin ETFs ended a five-day outflow streak on Wednesday, reporting $75.4 million in total inflows.

The rebound was led by BlackRock’s IBIT, which brought in $60.6 million. However, the recovery still fell short of covering the more than $500 million the fund had lost the previous day.

Grayscale’s Bitcoin Mini Trust also recorded positive flows. Fidelity and VanEck, however, posted $39 million in combined outflows.

The recent wave of redemptions has been persistent across the industry. CoinShares data shows that crypto exchange-traded products recorded $2 billion in outflows last week, the highest weekly figure since February. U.S. products accounted for nearly all of it.

U.S. spot Bitcoin ETFs have shed almost $3 billion so far in November, placing the category on track for one of its weakest months on record.

Markets are bracing for an unusually uncertain December Federal Reserve meeting after the recent government shutdown delayed key labor data.

Rate-cut expectations for next month dropped to 41.8% this week. Minutes from the Fed’s October meeting show a divided committee, balancing stubborn 3% inflation with the risk of easing too early.

Restricted liquidity has been a recurring theme. Analysts at CryptoQuant noted that the same conditions contributed to Bitcoin’s sharp November slide, as reduced liquidity tends to weigh heavily on speculative assets.

Thursday’s U.S. stock session reflected the tension. After a strong morning rally driven by Nvidia’s upbeat earnings, markets reversed.

The Nasdaq, up nearly 2.5% earlier in the day, slipped into negative territory. The S&P 500 also edged down.

Investors shifted focus to the September jobs report, which showed 119,000 new positions, more than double expectations, but added new questions about the Fed’s next move.

Bitcoin Drops as OG Wallets Unload Billions, Exposing Fragile Liquidity

Global markets had mixed reactions. Gold held near $4,084 per ounce. Analysts noted that the metal’s resilience reflected expectations that the Fed may avoid another rate cut in December.

The latest Bitcoin sell-off also comes as traders continue to unwind positions built up during October’s record run.

Heavy selling from large holders has intensified the pressure. A lot of Bitcoin OG wallets have been indicating moves to dump their holdings.

Early in November, BitcoinOG (1011short) deposited about 13,000 BTC worth $1.48b to Kraken since Oct. 1, while early adopter Owen Gunden has transferred 3,265 BTC worth $364.5m to Kraken since Oct. 21.

Additionally, Gunden transferred his last 2,499 Bitcoin, worth $228 million, to cryptocurrency exchange Kraken on Thursday.

In total, Gunden’s wallet has sold 11,000 Bitcoin worth around $1.3 billion since Oct. 21, liquidating his entire Bitcoin holdings, according to Arkham.

Analysts say October’s violent liquidation cascade, which wiped out more than $19 billion in leveraged crypto positions, damaged market structure.

Liquidity never fully returned, leaving prices vulnerable to even moderate selling.

Swissblock analysts say Bitcoin has reached “cycle-level exhaustion” near $90,000. They argue that reclaiming $97,000 to $98,500 would be needed to regain bullish momentum.

Glassnode noted similar resistance levels around the short-term holder cost basis between $95,000 and $97,000.

Crypto’s weakness has preceded broader market pullbacks several times in 2024 and 2025.

The pattern reappeared in early November, when Bitcoin started rolling over shortly before equities showed signs of strain.

Analysts remain cautious about calling it a direct warning sign but say the shared macro conditions, especially interest rate uncertainty, make simultaneous stress across markets more likely.