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Bitcoin has fallen below the $90,000 mark for the first time in seven months, raising concern across the market. However, several well-known industry executives believe the decline may be approaching its final stage. According to Tom Lee, chairman of BitMine, and Matt Hougan, chief investment officer at Bitwise Asset Management, Bitcoin could be days away from forming a bottom — creating what they describe as a rare opportunity for long-term investors.
Bitcoin Drops Below $90K Amid Market Anxiety
Bitcoin briefly slipped under $90,000 on Tuesday, marking its lowest price since April. The downturn adds to the volatility that has gripped the market since early October. According to Lee, the broader crypto sector is still reacting to the major liquidation event that hit markets on Oct. 10, which wiped out leveraged positions across multiple assets.
In an interview with CNBC, Lee explained that uncertainty surrounding the U.S. Federal Reserve’s December interest rate decision continues to weigh on investor sentiment. Many traders are concerned the Fed may delay expected rate cuts, adding pressure to risk assets like cryptocurrencies.
“I think that’s all creating this downside pressure,” Lee said. “But the good news is there are signs of exhaustion. I spoke with Tom Demar from Demar Analytics, and he believes indicators show that a bottom could occur sometime this week.”
Bitcoin is now trading near $90,700, roughly 28% lower than its all-time high of more than $126,000 reached on Oct. 6.
ETF Outflows, Whale Selling, and Geopolitics Add to Decline
Market analysts have pointed to several factors behind Bitcoin’s recent weakness. According to executives who spoke with Cointelegraph earlier this week, continuous selling from long-term holders, outflows from spot Bitcoin ETFs, and rising geopolitical tensions have created a challenging environment for digital assets.
Large whales — wallets that hold significant amounts of Bitcoin — have been reducing their exposure, applying additional pressure on spot prices. At the same time, ETF outflows suggest some institutional traders may be locking in profits or reducing risk amid global uncertainty.
Rising geopolitical tensions, especially trade-related developments and shifts in global macroeconomic policy, have also pushed investors toward safer assets, reducing demand for cryptocurrencies in the short term.
Analysts See a “Generational Opportunity” for Long-Term Investors
Despite the latest drop, some analysts remain optimistic. Matt Hougan, CIO at Bitwise, echoed Lee’s view that Bitcoin is close to forming a strong bottom. Hougan believes current price levels offer one of the most attractive long-term entry points seen in recent years.
He referred to the current environment as a “generational opportunity” and “a gift for long-term investors,” noting that Bitcoin often rebounds strongly after major market resets.
Hougan added that the wider financial markets have also been under pressure due to concerns around economic conditions, elevated AI-linked valuations, and uncertainty tied to U.S. President Donald Trump’s tariff policies. These combined stresses, he explained, have intensified risk aversion across global markets.
“I think we’re nearing a bottom,” Hougan said. “Bitcoin was the first asset to turn lower before the broader market pullback. It signaled rising risk across many sectors. I believe it will also be the first asset to bottom.”
He emphasized that investors with a long-term outlook — especially those planning for horizons of one year or more — may find current prices appealing.
Why Analysts Expect a Recovery Soon
Lee expects Bitcoin to recover lost ground and even reach a new all-time high before the end of the year. His prediction is based on the possibility of a strong rebound in the stock market later in 2025, which he believes would lift cryptocurrencies alongside traditional risk assets.
Historically, Bitcoin has responded positively during periods when equity markets show stable growth or recover from prolonged sell-offs. If stocks rally as Lee expects, the increased momentum could support a broader crypto market turnaround.
In addition, several technical indicators are flashing early signs of oversold conditions. Market exhaustion, reduced selling pressure, and declining volatility often precede major price reversals. Analysts believe these signals suggest Bitcoin could stabilize soon if key support levels hold.
Outlook: Cautious Near Term but Optimistic for 2025
In the short term, Bitcoin’s price is likely to remain sensitive to macroeconomic news, especially decisions from the U.S. Federal Reserve. Any clarity regarding upcoming interest rate changes could influence market direction.
However, both Lee and Hougan maintain that the long-term structure of the Bitcoin market remains strong. With institutional participation rising, supply dynamics tightening, and long-term holders showing increasing confidence, many analysts expect a significant recovery once broader market conditions stabilize.
For now, Bitcoin’s drop below $90,000 has heightened caution — but for seasoned investors, it may also mark the early stages of a new opportunity.
