Bitcoin dips below $90,000, marking ‘significant’ psychological break: analysts

Bitcoin dropped to a seven-month low below $90,000 on Monday night, which analysts view as a significant psychological break indicating market fragility. This decline is attributed to substantial net outflows from U.S. spot bitcoin ETFs, profit-taking by institutional investors, and short-term selling pressure. Macroeconomic factors, including tight liquidity due to the U.S. government's Treasury General Account status and uncertainty surrounding the Federal Reserve's December interest rate decision, are also weighing on prices. Analysts noted that while long-term confidence remains, immediate support levels are seen between $85,000 and $87,000, with $90,000 being crucial to regain. Future market direction depends heavily on the Fed's decision and upcoming unemployment data, though the government reopening might ease liquidity issues.

(Source：The Block)