Core Insights - Bitcoin experienced a significant drop, falling below $90,000 for the first time since April, indicating a potential prolonged downside trend due to a death cross formation [1][2] - The decline has erased all gains made in 2025, with a 28% decrease from the October peak of $126,000 [2] - The crypto market faced substantial liquidation, exceeding $1 billion, with Bitcoin alone contributing approximately $569.37 million [3] Market Sentiment - The fear and greed index is at 11, reflecting extreme fear among investors [3] - Traders are alarmed by the recent drop, speculating that further declines may occur [3] Economic Context - Anticipation of a potential rate cut by the Federal Reserve is contributing to Bitcoin's volatility, as there are mixed views on easing monetary policy amidst inflation concerns [4] - Some analysts view the current drop as a "routine" bear market for cryptocurrencies, suggesting a potential for recovery [4][5] Historical Perspective - Historically, every significant decline in Bitcoin's price has been followed by new record highs, indicating a potential for future growth despite current disruptions [5]