Why Did Bitcoin Drop Below $90,000 Again? A Breakdown of the Latest Sell-Off

Bitcoin recently dropped below $90,000, erasing earlier gains, driven by a confluence of factors. The primary catalyst was a cascade of forced long liquidations, wiping out nearly $500 million across exchanges and liquidating over 140,000 traders in 24 hours. This selling pressure was not absorbed by ETF flows; BlackRock's iShares Bitcoin Trust saw six consecutive weeks of outflows totaling over $2.8 billion, signaling fading institutional appetite. Macroeconomic pressure also contributed, as the Bank of Japan hinted at a possible rate hike, threatening global risk asset liquidity. Furthermore, traders were cautious ahead of the US PCE inflation data, which, while showing cooling inflation, was not easing fast enough to guarantee rapid rate cuts. Corporate signals, such as MicroStrategy warning it might sell Bitcoin if its treasury-valuation ratio weakens, and stress among miners due to rising energy costs, amplified the fear. While on-chain data shows some long-term accumulation, a significant portion of supply remains underwater. Bitcoin is now vulnerable near critical liquidation clusters between $90K and $86K, needing a decisive move above $96,000 to confirm recovery.

(Source：BeInCrypto)