Key Highlights
- Bitcoin fell below $90K and hit a six-month low as global markets sold off sharply.
- Ethereum dropped under $3,000 amid declining network activity and weak demand.
- Macro pressures, fading Fed rate-cut expectations, and rising market fear intensified the crypto downturn.
Bitcoin (BTC) dropped below the key $90,000 level on Tuesday in Asia, sliding to a six-month low as global markets faced renewed turbulence. Ethereum (ETH) followed the downtrend, falling under $3,000 amid a broad pullback across risk assets.
The latest decline erased weeks of gains and raised new questions about the durability of the crypto rally that began earlier this year.
The sell-off arrived during one of the worst sessions for U.S. equities in a month, showing how tightly crypto markets now track macroeconomic sentiment. Traders who had expected a strong end to 2025 now confront a market struggling to find support.
Crypto market drops sharply as stocks decline
Bitcoin’s move below $90,000 marks a 28% retreat from its October all-time high. The token lost more than 3% on November 17 alone, adding to a month-long trend of fading momentum.
Ethereum followed with a deeper 4% drop to $2,983, continuing a 40% correction from its August peak. Major altcoins suffered even worse weekly losses. Solana sank more than 21%, XRP dropped nearly 14%, and Cardano slid 22% as investors reduced exposure to high-risk tokens.
The downturn mirrored traditional markets. The S&P 500 fell 61 points to 6,672, while the Nasdaq dropped 192 points to 22,708. Both indices closed below their 50-day moving averages, breaking streaks not seen since 2007 and 1995.
The Dow Jones Industrial Average also tumbled more than 550 points ahead of Nvidia’s earnings report, amplifying concerns about weakening tech-sector leadership.
Bitcoin fills key CME gap after months
A notable technical event unfolded during the slide: Bitcoin finally closed its last major CME futures gap near $92,000. The gap had been open since April because CME futures stop trading on weekends while spot markets continue.
Traders often view these gaps as magnets for price action. Cryptocurrency analyst DaanCryptoTrades confirmed the long-awaited closure, calling it a removal of “downside overhang.”
However, he cautioned that a gap fill does not guarantee a reversal. With demand weakening and liquidity thinning, analysts say Bitcoin’s short-term structure remains fragile.
The next sessions will show whether the market stabilizes or extends the decline toward deeper support levels.
Macro pressure builds as rate-cut hopes fade
Macroeconomic forces added fuel to the decline. The Empire State Manufacturing Index unexpectedly surged to 18.7, reducing the probability of a December Federal Reserve rate cut. This index is a monthly survey to measure manufacturing and business conditions in New York State.
Market-based predictions changed rapidly: Polymarket information indicated a 55% probability of no rate cut, whereas CME futures indicated about a 60% probability that the Fed will not cut rates.
Higher-for-longer interest rates typically pressure risk assets, especially those reliant on liquidity and growth narratives. Research firm 10X Research noted that new buyer activity stalled in early October, giving sellers an advantage.
Analysts caution that long-term holders are yet to realize huge profits, and as such, additional declines may cause forced liquidations.
Investor sentiment has weakened sharply. Options data shows put volume exceeding call volume, a sign that traders expect more volatility or are hedging against further drops. The industry’s sentiment index is now near recent lows.
On-chain data shows signs of capitulation
On-chain metrics from Glassnode and Bitfinex indicate that short-term holders are taking realized losses, a pattern often seen during capitulation phases.
These are the conditions that have been observed to be close to the market bottoms in the past, and analysts warn that further retracements can still be experienced.
Popular crypto analyst Benjamin Cowen opined that Bitcoin might revisit its 200-week exponential moving average of between $60,000 and $70,000. The next major support zone is considered to be $76,000 by others.
Still, several analysts anticipate a temporary relief rally, as the oversold situations have been created in various indicators.
Ethereum loses key $3,000 level amid weak network activity
Ethereum’s drop to $2,983 has underscored the broader risk-off mood. Ethereum has moved mostly in tandem with altcoins, showing no asset-specific catalysts strong enough to shift sentiment.
Analysts say macro factors, from U.S. government shutdown fears to rising global tariffs, have overshadowed Ethereum’s internal developments. Network activity has also slowed.
Total Value Locked on Ethereum fell to a four-month low of $81 billion, and DEX trading volumes decreased by almost 27% in the last month. Lower usage reduces ETH burn rates, weakening the token’s supply-side support.
Companies building ETH reserves, including Bitmine Immersion and The Ether Machine, now face unrealized losses as their shares trade below net asset value. This discourages new investors and reduces demand for ETH-linked financing.
Layer-2 networks show growth despite downtrend
Even during the recession, Ethereum layer-2 networks are growing. Base processed more than 103 million transactions in a week, rivaling volumes on chains with far higher deposits. This growth reinforces Ethereum’s lead in Real World Asset (RWA) tokenization and decentralized stablecoin infrastructure.
But for prices to recover meaningfully, analysts say global uncertainty must ease. With U.S. government debt rising and energy costs affecting the AI and data center industries, markets remain sensitive to shocks.
Can Bitcoin hold above $89K?
The next few days will show whether Bitcoin will stabilize at around $89,000 or drop below. Direction will be guided by economic data, remarks of the central bank, and institutional flows.
At the moment, both Bitcoin and Ethereum are under a high-risk situation, with traders waiting to get better indicators after one of the steepest pullbacks in the market in months.
