Bitcoin is currently trading at a price of $87,261, a dramatic reversal for the world’s largest cryptocurrency that some predicted would hit $1 million later this year.
“The brutal sell-off happening in crypto is not unexpected, considering we’ve just seen the biggest hack in our history — if not the history of all financial markets,” said Charles Wayn, co-founder of the Web3 firm Galxe.
Wayn added that last week’s Bybit hack was unlikely to “hold back” Bitcoin and other cryptocurrencies in the long-term. Market volatility has also been compounded by renewed concerns over President Donald Trump’s proposed global tariffs, which have rattled stock markets, he added.
On Tuesday, the broader crypto market faced turbulence beyond Bitcoin, with Ether trading at $2,425, and Solana’s price sinking to $144. Overall, the global crypto market cap has dropped to $2.8 trillion, reflecting a 6.8% decrease in the market, according to CoinMarketCap.
Last month, when Bitcoin briefly plunged below $100,000, Standard Chartered recommended investors “buy the dip,” as the bank forecasts Bitcoin might reach $200,000 later this year. As Bitcoin moves below $90,000 this week, buying the dip is a sentiment echoed by others in the industry, including Strategy’s Michael Saylor and Donald Trump’s son Eric Trump.
Some analysts view current market conditions as a critical inflection point for Bitcoin: “It is crucial to understand that Bitcoin is currently in a strong reversal zone,” said Arthur Azizov, CEO at B2BINPAY.
“If we close [Tuesday] below $89,233 and start trading beneath this level, the outlook becomes less favorable, as there is a possibility of further decline. On the other hand, if Bitcoin is bought back throughout the day, merely sweeping liquidity.. we could see further upward movement.”
Thomas Perfumo, Kraken’s Global Economist, said that Bitcoin’s dip below $90,000 has raised questions about whether the cycle has peaked, but the data tells a different story.
“Historically, major cycle tops coincide with Bitcoin dominance dropping into the low 40s as investors flood into altcoins. Right now, dominance remains strong in the low 60s — indicating that market momentum hasn’t yet reached a speculative peak,” Perfumo said. “At the same time, stablecoin market cap has grown 11% year-to-date, signaling continued on-chain capital deployment. These structural indicators suggest that the broader crypto market still has room to run.”
