Bitcoin below $90k: Why the crypto market is crashing today?

A Brutal Awakening: $150 Billion Goes Up in Smoke

The day is blood red across the entire ecosystem. Bitcoin (BTC), the market’s barometer, has shed nearly 3% to drop below the psychological threshold of $88,000. This movement acted as a massive sell signal for the rest of the sector, triggering a wave of red across traders’ dashboards.

But the pain is even more acute on the altcoin side. Ethereum (ETH), the leader in smart contracts, suffered a severe 6% correction, breaking its major support at $3,000. A drop that undermines confidence in DeFi and NFTs in the short term. Other heavyweights like XRP, Solana (SOL), TRON, and Monero were not spared, recording average losses of 4%.

This massive retracement movement comes as investor sentiment has turned to extreme caution with Trump’s new tariffs. The Fear & Greed Index, which was flirting with euphoria in recent weeks, is showing signs of nervousness. Selling volumes are accelerating, suggesting that “weak hands” are capitulating in the face of selling pressure.

Cascading Liquidations: Are Longs Capitulating Too Quickly?

The price drop is only the tip of the iceberg. Behind the scenes, it’s the derivatives market that has ignited the powder keg. A cascade of liquidations has hit traders overexposed to the upside (Long squeeze). When Bitcoin lost the $90,000 level earlier this week, thousands of leveraged positions were automatically liquidated, creating a snowball effect that pushed the price down to $88,000. In total, more than $1 billion has been liquidated in the last 24 hours.

This cleanup of Open Interest is often necessary to cleanse the market after an intense rally phase. However, the violence of the movement on Ethereum is concerning. Losing $3,000 opens the door to tests of lower support levels, potentially toward $2,800 if buyers don’t quickly step up to defend the zone.

On-chain data also shows whale movements toward exchanges, a potential sign of profit-taking or hedging in the face of current macroeconomic uncertainty. The market appears to be in “risk-off” mode, waiting for a catalyst to choose its next direction.

Bitcoin at $88,000: Golden Opportunity or Deeper Drop?

The question burning on every investor’s lips this morning is simple: is this the time to buy the dip? Historically, 20 to 30% corrections during a Bull run are not only common, but healthy.

According to Killa, as long as Bitcoin doesn’t fall below MicroStrategy’s average purchase price of $75,000, the drop isn’t over. Moreover, BTC has always fallen below the 2Y-SMA during bear markets. This is currently at $85,000. The question then is how far could it drop below this moving average?

While the market holds its breath, one thing is certain: volatility is back, and it offers as many opportunities as risks for savvy traders.

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