Bitcoin Holds Above $90,000 but Is Still Down 30% From Its Record
At the same time, the Fear & Greed Index has remained in Extreme Fear for eight consecutive days. This historically precedes market bottoms.
Quick overview
- Bitcoin is experiencing a significant 30% correction from its yearly high of $126,300, currently trading around $90,400.
- The crypto market is cautious, with major cryptocurrencies like Ethereum and XRP also seeing notable declines.
- Investor sentiment is influenced by macroeconomic factors, including the Federal Reserve's upcoming decisions and potential changes in leadership.
- Despite the current 'Extreme Fear' sentiment, this market phase may present opportunities for long-term investors to reassess their strategies.
The world’s leading cryptocurrency is undergoing a sharp 30% correction from this year’s high. What should investors expect going forward?
The crypto market is trading cautiously on Wednesday. Bitcoin (BTC) is down 2.4% in the last 24 hours, hovering near $90,400 — its weakest level since April, according to Binance. Ethereum (ETH) has fallen 3.8% to $2,982.
Altcoins are also deep in negative territory: XRP leads losses with a 5.7% drop, followed by Dogecoin (-4.3%), BNB (-3.6%), and Solana (-3.4%).
A Risk-Off Mood and Bitcoin’s Psychological Battle
BTC’s yearly high of $126,300 was widely seen as a zone of euphoria. Given the current macro backdrop, it triggered a sharp pullback — now totaling 28.4%. Many asset managers have shifted into “risk-off” mode, reducing exposure to higher-risk assets such as Bitcoin.
This cautious stance stems largely from the Federal Reserve’s wait-and-see approach ahead of September employment data following the longest government shutdown in U.S. history. Markets expect strong labor numbers despite the uncertain backdrop, raising doubts about a possible December rate cut.
Adding to the tension, Donald Trump has reportedly settled on his preferred candidate for the next Fed chair and may announce it soon. The news has rattled investors concerned about the central bank’s independence under Jerome Powell, whose term ends in May 2026.
For Bitcoin specifically, holding above the $90,000 zone is viewed as a sign of a controlled correction. Maintaining that level is also a psychological win for BTC, whose next moves will depend heavily on ETF flows, institutional demand, and sentiment around major tech stocks.
Opportunities in This Environment
Bitcoin’s volatility is nothing new — these swings are natural and expected. They won’t be the last. These pullbacks also create opportunities for responsible users (not short-term speculators) to rethink their strategy, whether that means accumulating, diversifying, or reassessing risk.
At the same time, the Fear & Greed Index has remained in “Extreme Fear” for eight consecutive days — a classic capitulation phase that historically precedes market bottom formation. This process tends to flush out speculative excess and sets the stage for a rebuilding cycle with cleaner fundamentals and greater potential for institutional inflows.
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