Bitcoin Price Plummets Below $90,000

Significant Market Decline

The price of Bitcoin (BTC) has fallen below the $90,000 mark for the first time in seven months, indicating a significant shift in investor sentiment towards riskier assets ¹

Factors Contributing to the Decline

Several factors have contributed to this sharp decline:

1. Diminishing Expectations of US Rate Cuts: The decreasing likelihood of further interest rate cuts by the US Federal Reserve has negatively impacted the cryptocurrency market ²
   Source 2

   https://internasional.kontan.co.id/news/bitcoin-anjlok-di-bawah-us90000-investor-mulai-jauhi-aset-berisiko
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2. Global Market Caution: A more cautious global market environment has led investors to become more risk-averse, affecting assets like cryptocurrencies that are sensitive to risk appetite ¹
   Source 1

   https://investasi.kontan.co.id/news/bitcoin-dan-ethereum-anjlok-pasar-kripto-tertekan-aksi-jual-dan-outflow-etf
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3. Large Investor Sell-offs: Significant sell-offs by large investors, particularly those holding between 1,000 to 10,000 BTC, have added to the downward pressure. Approximately 148,000 BTC were distributed by these investors since mid-November ²
   Source 2

   https://internasional.kontan.co.id/news/bitcoin-anjlok-di-bawah-us90000-investor-mulai-jauhi-aset-berisiko
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4. ETF Outflows: Cryptocurrency ETFs have experienced substantial outflows, further reducing market liquidity. BTC ETFs saw outflows of hundreds of millions of dollars, while ETH ETFs recorded outflows exceeding $700 million in just one week ²
   Source 2

   https://internasional.kontan.co.id/news/bitcoin-anjlok-di-bawah-us90000-investor-mulai-jauhi-aset-berisiko
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Market Impact

The combined effect of these factors has led to a significant correction in the cryptocurrency market. Bitcoin, which had reached a peak above $126,000 in October, has now dropped by nearly 30% from its peak ¹