Panic Warning: Bitcoin Crashes Under $90K – Early Warning of Risk-Asset Meltdown?

Market Overview - Bitcoin has fallen below the $90,000 mark for the first time in seven months, indicating a deepening sell-off in the crypto market and raising concerns about its role as an early warning signal for broader risk assets [1] - The total market capitalization of the crypto market has decreased by 2% in 24 hours to $3.08 trillion, with trading activity at $202 billion [2] Bitcoin and Major Cryptocurrencies Performance - Bitcoin's decline is noted at 2.5% daily and 12.7% weekly, losing key support levels [2] - Ethereum has also experienced a decline of 14% over the week, while XRP has seen a steeper decline of over 17% [2] Investor Sentiment - The Bitcoin Fear and Greed Index is currently in "Extreme Fear," reflecting negative investor sentiment [3] Bitcoin ETFs and Outflows - U.S.-listed spot Bitcoin ETFs reported $75.4 million in inflows, ending a five-day outflow streak, primarily driven by BlackRock's IBIT, which attracted $60.6 million [3] - Despite the inflows, the recovery is insufficient to cover the over $500 million lost the previous day [3] - Grayscale's Bitcoin Mini Trust recorded positive flows, while Fidelity and VanEck experienced a combined outflow of $39 million [4] Industry-Wide Trends - Crypto exchange-traded products recorded $2 billion in outflows last week, marking the highest weekly figure since February, with U.S. products accounting for nearly all of it [4] - U.S. spot Bitcoin ETFs have lost almost $3 billion in November, indicating one of the weakest months on record for this category [5] Economic Context - Markets are preparing for an uncertain December Federal Reserve meeting, with rate-cut expectations dropping to 41.8% this week [5] - Analysts have noted that restricted liquidity has contributed to Bitcoin's sharp decline in November, as reduced liquidity negatively impacts speculative assets [6]