Bitcoin Drops to Seven-Month Low Under $90K

Market Overview - The crypto market outlook is deteriorating, with Bitcoin dropping below $90,000 for the first time since April, down 4.5% in the last 24 hours due to movements from Mt. Gox wallets, involving approximately 185.5 BTC valued at $16.8 million [1] - Despite a recent uptick in buying pressure, Bitcoin's price has fluctuated, recovering from an intraday low of $89,368 to $91,474, while the total market capitalization of all cryptocurrencies has decreased by 20% from $4 trillion on October 14 to $3.2 trillion [2] Institutional Activity - The market is experiencing a shift from a momentum phase to a risk-management phase, with institutional demand declining and spot Bitcoin ETFs seeing outflows of $2.59 billion in November, approaching February's total of $3.56 billion [3][4] - BlackRock's Bitcoin ETF has recorded a significant outflow of $463 million, marking the worst week for crypto funds since February, while Ethereum ETFs also faced substantial outflows of $728.57 million [3] Market Sentiment - The outflows from exchange-traded funds are attributed to macroeconomic uncertainty, profit protection from earlier investments, and portfolio rebalancing after a strong crypto rally compared to traditional assets in 2023 [4] - Experts indicate that institutions are not exiting due to negative long-term sentiment but are responding to a lack of catalysts and a temporary shift towards risk-off positioning [5] Price Predictions - There is speculation that Bitcoin could revisit the $82,000 to $85,000 range if bearish flows continue, as this area aligns with long-term holder cost basis and ETF inflow clusters [6] - The probability of Bitcoin reaching $115,000 before hitting $85,000 has significantly decreased from 66.7% on November 13 to 25% as of Tuesday [6]