Is Bitcoin on the Brink of a $90K Collapse? Find Out What Experts Are Saying!

Bitcoin Heads to $90K as Crypto Selloff Gathers Steam

Strong economic data and a slumping bond market have called into question the idea of any rate cuts this year.

Updated Jan 9, 2025, 9:53 PM UTC

U.S. stock markets were closed on Thursday in remembrance of former President Jimmy Carter, but crypto is 24/7, bearing the entire brunt of any nervousness ahead of tomorrow's employment report.

In late-afternoon action, the price of bitcoin (BTC) returned to levels not seen in over a month, barely holding above $91,000, down about 3% over the past 24 hours. The broader CoinDesk 20 Index is down similarly, with notable underperformers including Solana (SOL) and Chainlink (LINK), both off by double-digit percentages.

This continued crypto selloff follows a major fourth quarter 2024 rally spurred by Donald Trump's November victory and hopes for a friendlier regulatory environment from Washington D.C. Another factor was easier monetary policy, with the U.S. Federal Reserve cutting its overnight interest rate by 100 basis points since September. However, a series of strong economic reports has shown that the economy and inflation are stronger than expected, leading to higher long-term interest rates.

Today’s selling comes ahead of the December jobs report. Strong economic data could lead markets to scrap the idea of any rate cuts in 2025 and potentially begin pricing in rate hikes in the coming months.

How Low Could Bitcoin Fall?

“BTC, ETH, and SOL are now revisiting December 5 range lows, and people are beginning to accept that these levels may not hold,” said trader Eugene Ng Ah Sio in an X post. “This is when most people start panicking.” He noted that the next support level for bitcoin is $85,000 if the $90,000 level fails.

Joe McCann, founder of Asymmetric Capital, suggested that BTC could target $75,000 if it doesn’t hold the $90,000 line. Prominent trader Skew indicated that the Thursday price drop might have been influenced by headlines regarding additional Silk Road-related bitcoin sales. Analyzing Binance order book data, Skew stated that bid liquidity ready to buy bitcoin below current prices is robust, outweighing sellers.

“Something to note here is the lack of volatility behind the price, which is partly due to the sell flow not being sizable and the amount of bid liquidity outweighing current sell pressure,” Skew remarked. “This doesn’t look that bad.”