(HedgeCo.Net) This week the cryptocurrency market is facing renewed jitters, with Bitcoin (BTC) falling beneath the psychologically important $90,000 level—its lowest point in seven months—before attempting a rebound. Reuters+2MarketWatch+2
What happened
On November 18, 2025, Bitcoin slid under $90,000 amid thinning liquidity and growing caution among large holders. Al Jazeera+1 In subsequent sessions it clawed back above $90,000, demonstrating some resilience—but the mood remains fragile. Cryptonews+1 At the same time, altcoins showed glimpses of life: for example, Starknet (STRK) jumped nearly 28 % in a relief rally, and tokens like AAVE, CRO and INJ posted gains amid the rotation. CoinDesk
Why this matters
Bitcoin’s descent under $90,000 erases much of its recent gain and reflects a broader sentiment shift: risk exposure in crypto is becoming less tolerated in certain quarters. MarketWatch+1 As one of the main “gateway” assets into crypto for institutional and retail investors alike, BTC’s behavior often sets the tone for market conviction and flows.
The fact that altcoins are showing some bounce suggests investors are seeking higher-beta opportunities given the compressed returns in large-caps, but they’re doing so cautiously given ongoing macro uncertainty. The “Fear & Greed” index has been at extreme fear levels, underscoring the nervous backdrop. CoinDesk
What’s driving the move
Some of the key drivers include:
- Reduced liquidity. With fewer fresh buyers and less leverage in play, even modest sell-offs can push price action disproportionately.
- Valuation fatigue. After BTC hit highs earlier this year, questions are mounting about how much further the rally can go without meaningful catalysts. euronews+1
- Macro factors. Interest rate expectations, inflation data, and regulatory signals all influence crypto flows since digital assets remain correlated to broader risk appetite.
- Rotation into alternatives. Some capital is shifting from large-cap crypto into smaller altcoins or specialized plays, leaving Bitcoin less buoyed.
Looking ahead
As the market stands, several scenarios are possible:
- Stabilization above support. If Bitcoin holds above the ~$88,000-$90,000 zone, it might establish a base for a gradual rebound.
- Further slide. Should support fail, a deeper correction is possible, potentially dragging altcoins with it.
- Catalyst-driven rebound. A strong positive event—such as major institution entering crypto, favorable regulatory announcement, or macro shock—could reignite momentum.
For investors, the key is to monitor support levels ( ~$88K for BTC ), watch for volume and liquidity signals, and be prepared for rotation. While Bitcoin remains central, altcoins may provide upside if investor risk appetite returns—but this will likely happen slowly, not in a full rush.
Bottom line
Bitcoin’s recent drop reflects a market in flux: one that is reassessing how much risk it wishes to carry in crypto at current valuations. The rebound attempt is encouraging, but the underlying caution suggests that a convincing move upward may need a trigger. The coming days will be telling: will this be a consolidation phase, or prelude to a sharper move down or up?