Bitcoin fell below 90K this week in its sharpest correction in seven months, raising concerns among traders across global markets. Analysts at BitMine and Bitwise Asset Management said the decline reflects a mix of macro uncertainty and ongoing liquidation after heavy sales earlier in the month. Both expect the downturn to ease soon, pointing to early signs that sellers are losing momentum.
Tom Lee, chairman of BitMine, told CNBC that the market is still dealing with the fallout from a large liquidation event on October 10. He added that investors are uncertain about whether the United States Federal Reserve will move ahead with a rate cut in December, which has weighed on risk assets. Lee said he has spoken with market technicians who believe a price bottom could form before the end of the week.
Bitcoin briefly traded under 90K on Tuesday according to CoinGecko data, marking its weakest level since April. The drop followed a period of steady outflows from United States spot exchange traded funds and renewed selling by large holders. Several crypto executives said broader geopolitical tensions have added to market nerves.
Analysts See Attractive Entry Point
Matt Hougan, chief investment officer at Bitwise, said the market pullback is creating what he called a generational opportunity for patient investors. He noted that concerns about the global economy, high valuations in artificial intelligence stocks, and trade policies under President Donald Trump have contributed to a cautious environment. According to Hougan, Bitcoin was the first major risk asset to turn lower, a pattern consistent with previous cycles.
Hougan expects Bitcoin to be among the earliest assets to rebound once selling subsides. He said investors with a long time horizon may find current levels appealing, adding that the market may already be close to stabilizing. His view aligns with Lee, who also believes the price floor is likely near.
Bitcoin is trading at roughly 90,700 dollars, about 28 percent below its record high set on October 6. Despite the slide, Lee said he remains optimistic that Bitcoin can recover lost ground before the end of the year. He expects strength in the stock market to lift sentiment, helping Bitcoin revisit new highs.
The recent market turbulence has revived debate over how closely Bitcoin now trades in relation to equities. Analysts say correlations often rise during periods of uncertainty but tend to loosen once risk appetite returns. A sustained rally in equities could ease pressure on digital assets and support a broader recovery.
The coming weeks will show whether selling pressure has truly faded or if markets remain vulnerable to further macro shocks. For now, both Lee and Hougan argue that the worst may be over for Bitcoin, with potential upside building as liquidity returns.