Core Viewpoint - The cryptocurrency market is experiencing a significant downturn, with Bitcoin falling below $90,000 for the first time in seven months, indicating a potential credit event brewing in the market [2][9]. Market Performance - As of the latest report, Bitcoin is priced at $89,838.9, with a daily decline of 5.86% and a 24-hour low of $89,750 [3]. - Ethereum has dropped below the $3,000 mark, currently at $2,958, reflecting a 6.43% decrease in the last 24 hours. Other cryptocurrencies like SOL and Dogecoin have also seen substantial declines [5]. Liquidation Data - Over the past 24 hours, more than 175,000 traders have been liquidated, with a total liquidation amount of $935 million. This includes $650 million from long positions and $280 million from short positions [7]. - The liquidation breakdown shows that in the last hour, $130 million was liquidated, with $120 million from long positions and $2.4 million from short positions [8]. Market Capitalization - The total market capitalization of cryptocurrencies has fallen to $3.187 trillion, representing a 2.4% decrease in the last 24 hours. Bitcoin's market share is currently at 57.3%, while Ethereum holds 11.3% [9]. Expert Commentary - Arthur Hayes, co-founder of BitMEX, suggests that the decline of Bitcoin from $125,000 to the $90,000 range, while the U.S. stock market remains at historical highs, indicates a brewing credit event. He warns that if market conditions worsen, Bitcoin could drop to the $80,000 to $85,000 range, but may rebound to $200,000 to $250,000 if U.S. liquidity expands again [9].

Core Insights - The recent decline in Bitcoin is primarily attributed to the contraction of US dollar liquidity rather than changes in fundamentals [1] - Since July, approximately $1 trillion in US dollar liquidity has evaporated, leading to the withdrawal of ETF arbitrage funds and a shift in DAT premiums, which has exposed Bitcoin to a negative liquidity environment [1] - Short-term projections suggest Bitcoin may further decline to the $80,000 to $85,000 range, influenced by potential credit events and rising US Treasury yields [1] - A significant correction in the US stock market (10% to 20%) and increased pressure on Treasury yields may compel the Federal Reserve and Treasury to implement substantial monetary easing, potentially driving Bitcoin prices up to $200,000 to $250,000 by year-end [1]