Why Did Crypto Crash Today: Bitcoin Drops Below 90K, Can BTC Rebound Soon?
Key takeaways
- Bitcoin is more than 5% down today, creating FUD in the overall market.
- The downtrend is caused by multiple factors, including macroeconomic issues, ETF inflows, and technical weakness.
- Short-term price prediction suggests that Bitcoin will move sideways.
- Despite the plunge, Bitcoin remains a strong asset with long-term growth potential.
Bitcoin saw a sharp price decline today, falling to a 24-hour low of $85,653. It witnessed a $4,000 drop within 2 hours, and the overall crypto market is in a FUD (fear, uncertainty, and doubt). Meanwhile, Gold and Silver have reached new heights today, indicating the shift of investors from Bitcoin to traditional assets.
Meanwhile, addresses that hold more than 10,000 BTC have resumed net accumulation in the $85,000-$90,000 range, indicating that a reversal is possible. Let’s check Bitcoin’s current market scenario and analyze where it is headed.
Why is Bitcoin down Today?
Bitcoin is down today due to a combination of factors such as macroeconomic uncertainty, weak inflows into ETFs, and a broader risk-off environment. The growth of Gold and Silver also contributed to the plunge. Let’s take a closer look.
Macroeconomic Uncertainty a Major Catalyst for Bitcoin’s Downtrend
The government shutdown in early November, the tighter monetary policy, the stronger U.S. dollar (DXY), and reduced expectations for Federal Reserve rate cuts indirectly affected Bitcoin. In addition, the ongoing global geopolitical tensions also contributed to the plunge.
Investors Prioritized Traditional Assets Like Gold
Various market observers expected that the geopolitical tensions and rising inflation could force investors to shift into advanced alternative assets like Bitcoin, but most of them preferred traditional assets like Gold instead. The investors still consider Gold as the primary safe-haven, and it has witnessed a sharp jump in the past hours. In addition, Silver touched its all-time high today.
ETF Outflows Severely Affected Bitcoin Charts
Spot Bitcoin ETFs experienced significant net outflows totaling $3.48 billion in November, and it has become the weakest month for Bitcoin ETFs ever. BlackRock’s product IBIT was the top contributor of the outflow, contributing more than half of the exodus, and the negativity created by the exits had a significant impact on today’s correction.
Can Bitcoin Rebound to New Heights?
Bitcoin could see a reversal soon due to its strong fundamentals and overall optimistic sentiment among the communities. In terms of ETF momentum, we can expect a significant uptrend following the plunge, primarily driven by the participation of institutional investors, including governments. The Texas state government has purchased $10 million of BlackRock’s ETF, and the product is already owned by major institutions such as Harvard University and Goldman Sachs.
While the technicals suggest a bearish scenario in the short-term, the support for the asset from key opinion leaders and market experts signals an uptrend in the long run.
Bitcoin Price Prediction: December 2025 to December 2026
Bitcoin could reach $100,000 again in February 2026. It will likely continue the sideways movement till the end of December 2025. Towards the end of 2026, BTC could exhibit a bearish trend, potentially falling towards the $72,000 mark. A detailed month-wise price prediction based on the chart analysis is provided below.
| Month | Min. Price | Avg. Price | Max. Price | Change |
|---|---|---|---|---|
| Dec 2025 | $ 88,731 | $ 88,815 | $ 88,916 | 3.02% |
| Jan 2026 | $ 88,110 | $ 89,555 | $ 92,048 | 6.63% |
| Feb 2026 | $ 89,435 | $ 96,693 | $ 106,050 | 22.86% |
| Mar 2026 | $ 99,872 | $ 102,620 | $ 104,531 | 21.10% |
| Apr 2026 | $ 98,162 | $ 99,427 | $ 100,106 | 15.97% |
| May 2026 | $ 94,480 | $ 97,655 | $ 100,150 | 16.02% |
| Jun 2026 | $ 93,027 | $ 94,341 | $ 95,209 | 10.30% |
| Jul 2026 | $ 91,361 | $ 92,649 | $ 93,224 | 8.00% |
| Aug 2026 | $ 89,236 | $ 90,376 | $ 91,451 | 5.94% |
| Sep 2026 | $ 87,867 | $ 89,352 | $ 89,919 | 4.17% |
| Oct 2026 | $ 85,112 | $ 87,268 | $ 88,371 | 2.37% |
| Nov 2026 | $ 74,904 | $ 78,871 | $ 87,178 | 0.99% |
| Dec 2026 | $ 74,546 | $ 77,095 | $ 82,354 | -4.60% |
The Bottom Line: HODL or Sell Bitcoin?
As an asset in extremely volatile conditions, traders are advised to maintain caution while engaging with Bitcoin. The price prediction suggests that Bitcoin could move sideways despite the external optimistic developments. Also, the technicals are weak, and the entire market is in FUD.
Since the crypto market is largely unpredictable, a sudden reversal for BTC could also happen, contradicting the predictions. Finally, keep in mind that the above-provided price forecasts are based on predictive modeling and should not be considered financial advice.
Also Read: Bitcoin Price Prediction Today: Will the Token Rebound or Dip Further?
Crypto & Blockchain Expert