Bitcoin dropped below $90,000 this week as liquidation pressure, weak ETF demand, and macroeconomic uncertainty converged.
The drop wiped out previous attempts' gains as Bitcoin tried to reclaim the $94,000–$95,000 range. This marked the second significant drop of the month.
Forced liquidations in the market
The drop began with a wave of forced long position liquidations. Nearly $500 million was lost from exchanges, including about $420 million in long positions, and over 140,000 trades were liquidated within 24 hours.
ETF investments failed to stem the selling. BlackRock's iShares Bitcoin Trust recorded six consecutive weeks of outflows, totaling over $2.8 billion.
U.S. ETF investments fell to just $59 million on December 3, indicating waning institutional interest.
The macro backdrop turned hostile. The Bank of Japan hinted at possible interest rate hikes, threatening the liquidity of carry trades that have helped sustain global risk assets.
Traders reduced risk ahead of the U.S. PCE inflation release, forcing Bitcoin into a cautious $91,000–$95,000 range.
The latest U.S. PCE data broadly met expectations, showing core inflation cooling, but it was still above the Fed's target.
Markets reacted cautiously, interpreting the data as evidence that inflation continues to slow down, but not quickly enough to guarantee rapid rate cuts.
Corporate signals increased fear. MicroStrategy warned it might sell Bitcoin if its cash balance ratio weakens, causing a 10% drop in its stock.
Miners' stress increased as energy prices rose, hash rates fell, and high costs forced operators to liquidate BTC to remain solvent.
On-chain flows reflected a divided mood. Matrixport moved over 3,800 BTC from Binance to cold storage, indicating accumulation by long-term holders.
Analysts, however, estimate that a quarter of all circulating supply is at a loss at current prices.
The community's mood shows fear — pockets of optimism
Traders in social channels discussed whether the move was natural or manipulated. Market analysts largely blamed excessive leverage, thin liquidity, and macro hedging rather than coordinated price intervention.
Others pointed to long-term optimism, referencing JPMorgan's new $170,000 price target for 2026.
Bitcoin is now trading near a critical turning point. Liquidation clusters between $90K–$86K make the market vulnerable without new ETF investments or easing macro pressures.
A move back above the $96,000–$106,000 range is necessary to strengthen the recovery sentiment.
Currently, volatility reigns. Bitcoin has fallen, recovered, and broken again — and traders await the next decisive move.
