Bitcoin Drops Below $90K, Highest Losses Since Oct 2024

Bitcoin briefly dropped below the $90,000 mark, causing approximately 12% of all Bitcoin addresses to hold at a loss, the highest percentage of unrealized losses since October 2024. This decline has sparked concerns among investors as the market continues to show signs of volatility.

The recent dip in Bitcoin’s price marks a significant moment in the cryptocurrency market. According to on-chain data , the number of Bitcoin holders in the red has surged, highlighting growing market uncertainty. The attached historical in/out of the money chart shows a noticeable increase in the percentage of addresses out of the money, represented by the red areas, as Bitcoin’s price tumbled below $90,000.

The chart further illustrates the correlation between Bitcoin’s price movements and investor profitability. During the strong rally in late 2024, a significant portion of holders were in the green. However, the recent downturn has reversed this trend, pushing more addresses into negative territory.

Historical Trends Highlight Bitcoin’s Future Implications

This is the highest percentage of unrealized losses since October 2024, when Bitcoin faced a similar dip amid macroeconomic pressures and market corrections. Historical patterns indicate that such spikes in unrealized losses often coincide with periods of heightened selling pressure, as investors may seek to cut losses or capitalize on potential rebounds.

Bitcoin’s brief dip below $90,000 raises questions about the cryptocurrency’s near-term trajectory. Analysts suggest that if Bitcoin fails to reclaim the $90,000 level soon, it could lead to further selling pressure. Conversely, a strong bounce-back could restore investor confidence and reduce the percentage of addresses holding at a loss.

As Bitcoin navigates this period of heightened volatility, market participants are closely monitoring on-chain metrics and historical patterns for signs of a potential recovery or continued downturn. With 12% of Bitcoin addresses now in the red, the coming weeks will be crucial in determining the cryptocurrency’s next major move.

The price drop reflects growing uncertainty amid a complex macroeconomic environment and shifting investor sentiment. The decline below the $90,000 threshold is significant, as it challenges a key psychological support level that has historically influenced market behavior. If the price fails to rebound quickly, it could lead to increased selling pressure, further impacting market dynamics and investor confidence.