Bitcoin hits seven-month low, slides below $90,000. What's behind the plunge?

Bitcoin price today: The largest crypto token — Bitcoin — has been under pressure lately, sliding below $90,000 for the first time in seven months on Tuesday, November 18.

The sharp pullback has sparked debate over whether this is merely a short-term correction or the start of another four-year cycle that could trigger a prolonged sell-off.

The highly volatile cryptocurrency has wiped out its 2025 gains and is now down nearly 30% from its October high of over $126,000. It dropped 2% to $89,953 during the afternoon trade in Asia.

Traders attribute the decline to rising uncertainty over potential US interest rate cuts and a broader market downturn following an extended rally.

“Crypto market has entered a phase where sentiment, structure, and psychology are colliding as Bitcoin trades near $90,000, wiping out all of its 2025 gains and putting the four-year cycle debate back at the centre of every conversation. ETF outflows, whale-driven short positioning, and thinning liquidity have turned a routine correction into a deeper drawdown,” said Avinash Shekhar, Co-Founder & CEO, Pi42.

Ether and XRP also under pressure

Ether has been facing sustained pressure, dropping nearly 40% from its August peak above $4,955, and trading 1% lower at $2,997 on Tuesday.

On the same day, XRP saw a sharp pullback from the $2.30 resistance level, as profit-booking weighed heavily on demand. The spike in institutional trading volumes signalled that this resistance level remains firmly in place.

“Ethereum is struggling to hold the $3,000 region, and XRP’s profitability has dropped to yearly lows, signalling uneven pressure across majors. The real question now is whether this slide marks the early signs of a crypto winter or whether the market is clearing the path for an eventual rebound. The next few sessions will reveal whether caution tightens its grip or whether buyers finally show up with conviction,” Shekhar said.

What's behind the Bitcoin price crash?

According to Paras Gupta, SVP, Custody and BizOps at CoinDCX, Bitcoin’s price is falling largely because the market has entered a phase of extreme fear. BTC’s drop to nearly $90,250, a level last seen in April, has triggered widespread concern and accelerated sell-offs across the crypto ecosystem.

“This decline has also pushed major altcoins like Ethereum, Solana, and BNB below key support levels, reinforcing the view that the market is slipping into a deeper correction. Adding to the pressure, Bitcoin futures have turned negative for the first time since March, signalling weakening confidence among traders,” Gupta said.

He further explained that the internal flows have surged, suggesting that long-term holders are reducing exposure, Overall, the sharp fall appears less tied to Bitcoin’s long-term fundamentals and more to a combination of heightened fear, liquidity stress, and short-term market reactions. It’s a sentiment-driven reset rather than a structural collapse.

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