BTC falls below $90,000 amid massive liquidations

The cryptocurrency slipped 2.4% during the Asian session, extending a downtrend that began after it hit a record high above $126,000 in early October.

The decline comes as traders scale back expectations for Federal Reserve easing. The odds of a December rate cut have fallen from 90% to 40%, leaving markets more exposed to risk-off sentiment and triggering sell-offs across speculative assets.

Short-term U.S. Treasury yields remain above 5%, while major equity indices have pulled back from recent highs. The shift has weakened the macro narrative that supported Bitcoin’s rally earlier in the year.

Futures activity has surged to record levels. Open interest has exceeded $94 billion, with some platforms offering leverage of up to 1,000x. The highly leveraged market structure unraveled once BTC fell below $100,000, sparking a wave of liquidations. Since late October, more than $19 billion in positions have been liquidated, including $950 million in a single day. On several occasions, daily liquidations have topped $3.2 billion.

Long-term holders have added to the pressure by taking profits. Investors who bought between $40,000 and $80,000 sold roughly 815,000 BTC over the past month. Their selling, combined with limited demand, accelerated the decline.

Another layer of weakness has emerged in institutional flows. The same inflows into Bitcoin ETFs that fueled the rally earlier in the year are now enabling institutional exits. Spot Bitcoin ETFs saw $1.1 billion in outflows last week, adding further strain to the market.

The breakdown of key technical levels triggered another round of stop orders and liquidations. The market is now undergoing a deleveraging phase as it seeks a new balance between buyers and sellers.

Bitcoin recovered slightly to around $90,391 by midday, but analysts warn the price may still test lower levels before new buyers emerge.