#BTC86kJPShock Why $BTC dropped below $90,000 again: a clear analysis of the sell-off
Bitcoin fell back to under $90,000 this week, as forced liquidations, weak ETF demand, and macroeconomic stress converged for a second significant correction this month. The drop wiped out the previous rebound toward the $94,000 to $95,000 zone and exposed how fragile market liquidity has become.
The decline was triggered by a wave of forced long liquidations. Over $500 million in positions were wiped out on major exchanges, with approximately $420 million coming from leveraged longs. More than 140,000 traders were liquidated in a single day. With liquidity scarce and order books shallow, BTC had little support on the way down.
ETF flows failed to stabilize the market. BlackRock's iShares Bitcoin Trust recorded six consecutive weeks of outflows, totaling over $2.8 billion. Bitcoin ETF inflows in the U.S. dropped to just $59 million at the start of the week, signaling a declining institutional conviction.
Macroeconomic developments added additional pressure. The Bank of Japan hinted at a possible rate hike, threatening the liquidity environment on which risk assets depend. Traders also reduced exposure ahead of the latest U.S. PCE inflation data. Although the print showed a gradual cooling, it was not smooth enough to signal an imminent change in Federal Reserve policy.
Corporate and mining signals heightened caution. MicroStrategy suggested it may sell BTC to rebalance its treasury, while miners' margins tightened as energy costs rose and the hash rate fell, forcing some operators to unload coins.
Bitcoin is now near a critical support cluster between $86,000 and $90,000. Without stronger ETF inflows or a more favorable macro scenario,
