TLDR
Bitcoin fell below $90,000 for the first time in six months as the total crypto market cap dropped by $120 billion to $3.04 trillion
Uncertainty around Federal Reserve interest rate cuts has dampened investor sentiment, with odds of a 25-basis-point cut falling to 50%
Institutional investors are pulling money from spot Bitcoin ETFs while long-term holders take profits
Over $19 billion in forced liquidations occurred in the past month, reducing global crypto market value by more than $1 trillion
The Crypto Fear & Greed Index fell to “extreme fear” territory, its lowest level since late February
The crypto market experienced a sharp downturn on Tuesday as Bitcoin dropped below $90,000 and the total market capitalization fell by $120 billion. The sell-off affected most major cryptocurrencies across the board.
Bitcoin is currently trading at $90,098 after falling 4.4% in the past 24 hours. The price drop erased all gains made earlier in 2025 and pushed the market into correction territory.
The total crypto market cap now sits at $3.04 trillion, down over 4% in the past day. The market is approaching the critical $3.00 trillion threshold, which could trigger more selling if broken.
Federal Reserve policy uncertainty is the main factor behind the market decline. Data from the CME’s FedWatch tool shows odds of a 25-basis-point interest rate cut have fallen to about 50%. These odds were much higher just weeks ago.
The shift in rate cut expectations has led investors to move away from riskier assets like cryptocurrencies. Delays in U.S. government economic data releases have left traders with fewer signals to guide their decisions.
Market Sentiment Reaches Extreme Fear
The Crypto Fear & Greed Index dropped to “extreme fear” levels. This marks the lowest reading since late February and reflects widespread anxiety among traders.
Institutional investors are pulling money from the market through spot Bitcoin ETF outflows. Long-term Bitcoin holders are also taking profits at current price levels.
Forced liquidations have accelerated the market decline. Over $19 billion in liquidations occurred in the past month alone, contributing to a $1 trillion reduction in global crypto market value.
Large cryptocurrency holders known as “whales” have started selling their positions. These sales pushed Bitcoin below key technical support levels and increased volatility across smaller cryptocurrencies.
Technical and Geopolitical Factors
Bitcoin’s price chart shows bearish technical patterns forming. The cryptocurrency formed a “death cross” between its 50-day and 200-day moving averages, which typically indicates more downside ahead.
$BTC – The “Bottom” Cross
We all know a “death cross” usually signals the start of something bearish. But ironically, when using the 50-day and 200-day MA, this cross has consistently marked Bitcoin’s major bottoms, in 2023, 2024, and earlier this year.
Not saying we’ll shoot… pic.twitter.com/5P3RjIdfsF
— BATMAN ⚡ (@CryptosBatman) November 17, 2025
Market liquidity has thinned in recent weeks. Reduced liquidity means that even small sell orders can cause larger price movements than usual.
Trade tensions from recent tariff announcements have added to market stress. Uncertainties around global financial policies have affected speculative assets across multiple sectors.
Analysts note that Bitcoin is holding above the $89,800 support level for now. This price point has acted as a stabilizing zone during the current volatility.
If Bitcoin maintains support at $89,800, it could rebound toward $95,000 in the coming days. However, a break below this level could send the price down to $86,822 or even $85,204.
The total crypto market cap faces similar pressure. If it falls below $3.00 trillion, it may drop toward $2.93 trillion and trigger broader panic selling.
DappRadar, a crypto analytics platform launched in 2018, announced it is shutting down permanently. The company cited financial challenges that made continued operations impossible.
Meanwhile, 1inch launched Aqua, a new liquidity protocol designed to address capital fragmentation in decentralized finance. The protocol allows multiple strategies to share the same liquidity while maintaining self-custody.
