Bitcoin Plummets Below $90,000: What’s Next for Investors?

The cryptocurrency market is experiencing significant turmoil, with Bitcoin's value dropping below $90,000, erasing all gains for the year. This decline has led to a sharp decrease in the total market capitalization by at least 30% since early October.

As fear grips investors, many are purchasing protective contracts, anticipating further downturns. Retail interest has waned, resulting in substantial liquidations, while institutional holders maintain their positions.

Coinbase shares also dropped sharply, reflecting the broader market's struggles linked to economic pressures. Bitcoin ETF investors are facing losses, as the cryptocurrency has fallen below its average cost basis.

Amid these developments, analysts caution of a potential 30-40% correction but foresee a rebound when market conditions stabilize. El Salvador continues to buy Bitcoin during this slump, highlighting a divergence in investment strategies amid prevailing uncertainty.