Bitcoin price today slipped below $90,000 to a low of $89,368, causing concern among short-term traders while presenting what some view as a strategic opportunity for long-term holders.
Amid the turmoil, El Salvador has continued its ambitious Bitcoin accumulation strategy, adding significant amounts of BTC even as market sentiment turns increasingly cautious.
Bitcoin price slips below $90K
Bitcoin, the largest cryptocurrency by market cap, has experienced a sharp decline in recent weeks, falling from a record above $126,000 in early October to the low $90,000s.
This retreat has erased nearly $600 billion in market value, fueling fears of a broader sell-off.
Analysts attribute the downturn to macroeconomic pressures, including trade tensions, weak liquidity, and the anticipation of Federal Reserve interest rate adjustments.
Investor sentiment is particularly fragile, with the crypto fear index signaling “extreme fear” across the market.
Short-term holders, defined as addresses holding BTC for less than three months, have been the most affected, with approximately 148,000 BTC sold at a loss during recent panic events.
Derivatives markets have reflected this stress, with traders increasingly buying protective options at the $85,000 and $80,000 levels.
Whale activity has also influenced market movements, as large wallets holding more than 1,000 BTC have executed concentrated sales, while ETF outflows continue to reduce liquidity.
But despite the selling pressure, some market participants argue the current pullback represents a natural part of Bitcoin’s cyclical behavior. Historical data shows that deep corrections have often preceded subsequent rallies, reinforcing the notion that opportunistic accumulation during downturns may yield long-term benefits.
El Salvador cashes in on the Bitcoin dip
Amid the Bitcoin dip, El Salvador has remained resolute in its Bitcoin strategy, seizing the opportunity presented by falling BTC prices.
Over the past week alone, the El Salvador government purchased approximately 1,098 BTC, valued at around $100 million, increasing its total holdings to 7,474 BTC.
This marks one of the largest single-week accumulations in the country’s history and highlights President Nayib Bukele’s commitment to integrating Bitcoin into national financial policy.
Notably, the El Salvador government’s strategy has been both consistent and disciplined, with daily purchases designed to capitalize on price dips while gradually building a robust digital reserve.
Bukele has shared regular updates on social media, showcasing the government’s Bitcoin treasury and signaling a long-term vision for the asset.
The Central American nation’s approach contrasts sharply with the broader market, where fear and short-term selling dominate trader behavior.
Stacy Herbert, director of El Salvador’s Bitcoin Office, emphasizes that the government’s continued purchases are intended to provide citizens with greater financial autonomy while reducing reliance on the US dollar.
This policy underlines a broader philosophy of distributing financial power through digital assets rather than concentrating it within traditional institutions.
Gemini Co-Founder warns it could be the last chance to buy BTC below $90K
Amid the market turmoil, Cameron Winklevoss, co-founder of Gemini, has described the sub-$90,000 price level as a potentially rare buying opportunity.
Winklevoss’ comment highlights a popular trend where deep drawdowns like the current one are often followed by higher highs in Bitcoin’s history, suggesting that long-term buyers may be positioned to benefit from the current dip.
Speaking at Bitcoin Amsterdam, Gemini’s co-founder emphasized that institutional buyers like MicroStrategy, which on Monday disclosed it had bought another 8,178 BTC, remain active, with substantial acquisitions continuing even as the broader market struggles to absorb supply.
Analysts note that Bitcoin is increasingly behaving as a macro asset, influenced as much by global liquidity, policy decisions, and economic shifts as by its underlying supply dynamics.
As traders position for potential downside protection, the interplay between government accumulation, institutional purchases, and market sentiment sets the stage for a volatile yet opportunity-rich environment.
For investors assessing the current landscape, the Bitcoin price below $90,000 may not only represent a market correction but also a strategic entry point for those seeking long-term exposure to the asset.