Bitcoin dipped sharply below 90,000, marking its weakest level since April and wiping out all of its gains for the year. The decline wasn’t driven by a single headline but by a mix of fading momentum, profit-taking, and traders positioning ahead of the next major macro catalysts. As Bitcoin slipped under key technical levels, algorithmic trading accelerated the fall, creating a chain reaction across the broader crypto market. Long-term holders also showed signs of hesitation as extreme volatility returned, signaling that even confident investors are reassessing risk after months of strong rallies.

The downturn also spread quickly into altcoins, where liquidity thinned and selling pressure intensified. Stablecoin demand ticked up, a sign that investors temporarily shifted toward lower-volatility assets while waiting for clearer direction. Analysts noted that the move resembled a classic “self-fulfilling prophecy,” where expectations of a pullback triggered even more selling, which then validated those expectations. With Bitcoin ETF flows slowing and macro uncertainty rising, traders are now watching whether upcoming U.S. data or institutional rebalancing can calm the market or send it into a deeper correction.