The digital asset market suffered a hard blow this Tuesday, deepening the Bitcoin price correction below the psychological barrier of 90,000 dollars. Shiliang Tang, managing partner at Monarq Asset Management, noted that the decreasing probability of rate cuts is having a negative impact. This bearish movement wipes out gains accumulated during 2025, generating widespread concern.
Financial data reveals a 2.4% drop on Tuesday, extending the pullback from the record of 126,000 dollars reached in early October. Likewise, Bitcoin exchange-traded funds (ETFs) recorded net outflows of approximately 2.8 billion dollars in November alone. On the other hand, liquidations in the derivatives market amounted to 950 million dollars in the last 24 hours, affecting both long and short positions.
Are institutional investors preparing for a drop towards 80,000 dollars?
This negative scenario arises amidst economic headwinds, including renewed doubts about the Federal Reserve’s interest rate policy. Furthermore, the Bitcoin price correction responds to uncertainty generated by President Donald Trump’s tariff plans. The market is reassessing risk, as the odds of a rate cut in December have fallen below 50%, strengthening investors’ conservative stance.
On the other hand, options traders are betting on deeper losses, with growing demand for protection at the 85,000 and 80,000 dollar levels. Thus, companies with digital treasuries like Strategy Inc. face significant pressure, forced to reassess their positions given the devaluation of their holdings. This trend suggests that risk appetite has decreased drastically, affecting the overall valuation of the cryptocurrency sector and speculative assets.
Nick Ruck, director at LVRG Research, anticipates that volatility will persist over the coming months, while institutions adjust their portfolio projections due to global macro factors. However, long-term buyers could view this current decline as a strategic entry opportunity, even though retail trading has slowed its participation. The market remains attentive to whether the asset will manage to consolidate or seek new annual lows.
