Bitcoin has slipped back below the psychological barrier of 90,000 dollars, trapped in a perfect storm of adverse technical and macroeconomic factors. Mohammad Shahid, editor and analyst of the report, noted: “Bitcoin dropped under $90,000 due to mass long liquidations and thin market liquidity.” This retracement marks the second major collapse of the month, erasing previous attempts to reclaim the key 95,000 dollar zone.
The immediate catalyst for this decline was a brutal cascade of forced liquidations that wiped out nearly 500 million dollars across major exchanges. Of this figure, approximately 420 million corresponded to long positions, affecting more than 140,000 traders within a critical 24-hour window. The lack of buying support was evident when ETF flows failed to absorb the selling pressure, exacerbating the downward volatility.
On the other hand, institutional data paints a gloomy short-term picture, with BlackRock’s iShares Bitcoin Trust recording six consecutive weeks of outflows. It is estimated that more than 2.8 billion dollars have left this investment vehicle, while inflows into United States ETFs fell to just 59 million on December 3. This withdrawal of institutional capital signals a temporary exhaustion of risk appetite at current price levels.
Macroeconomic Factors and Corporate Pressure
The macroeconomic environment has turned hostile following signals from the Bank of Japan regarding a possible interest rate hike, threatening “carry-trade” liquidity. Additionally, traders reduced their exposure ahead of the United States PCE inflation data release. Although the data arrived in line with expectations, the market interpreted with caution that inflation is not easing fast enough to guarantee aggressive rate cuts.
Likewise, fear was amplified when MicroStrategy warned about the possibility of selling Bitcoin if its treasury valuation ratio weakens. This news triggered a 10% drop in its stock, adding to the stress of miners facing rising energy costs. High-cost mining operators have begun liquidating their BTC holdings to maintain solvency in the face of decreasing operating profitability.
Is this the moment of capitulation or silent accumulation?
Despite generalized pessimism, on-chain flows reveal interesting strategic movements by experienced players. Matrixport moved more than 3,800 BTC off Binance into cold storage, suggesting accumulation by long-term holders who see value at these levels. However, it is estimated that a quarter of all circulating supply remains underwater, which could generate additional selling resistance.
Future rate policy and the Federal Reserve’s reaction will be decisive in defining the asset’s next big move. As long as uncertainty persists, Bitcoin is likely to continue testing investor patience in this critical price range. The market remains on edge, awaiting a clear signal confirming if we are facing a generational buying opportunity or a deeper correction.
