Crash

Jerome Powell

Bitcoin

Score

Bitcoin Bull

<p><a href="https://coinpedia.org/news/fomc-crypto-crash-alert-why-bitcoin-and-xrp-prices-are-falling-today/" rel="noopener noreferrer nofollow">Bitcoin price today fell below $90,000</a>, wiping nearly $170 billion from the crypto market in just one day. But this crash is only the beginning of a bigger problem. Weak liquidity, negative on-chain signals, and the Federal Reserve’s latest decision are all adding more pressure.</p>
<p>All these signs together raise concerns about whether the market is preparing for a deeper fall.</p>
<h2 class="wp-block-heading" id="h-fed-s-latest-rate-cut-led-market-drop-nbsp"><strong>Fed’s Latest Rate Cut Led Market Drop&nbsp;</strong></h2>
<p>Bitcoin faced sharp selling as traders responded to the <a href="https://coinpedia.org/news/fomc-meeting-today-live-updates/" rel="noopener noreferrer nofollow">Federal Reserve cutting rates by 25 bps</a>, but then delivered a surprise message.&nbsp;</p>
<p>Fed Chair Jerome Powell said there may be no more rate cuts before the January 2026 meeting. This bearish tone pushed risk assets lower, driving Bitcoin toward the $89,000 zone.</p>
<p>On top of that, the Fed announced it would buy $40 billion in Treasury bills within 30 days, a move it claims is not “money printing,” but experts say it shows stress in the money market.</p>
<p>This pressure pushed gold prices higher and made investors pull money away from riskier assets like crypto.</p>
<h2 class="wp-block-heading" id="h-crypto-market-crashes-as-liquidation-reaches-520-million">Crypto Market Crashes as Liquidation Reaches $520 million</h2>
<p>As fear spread, the total <a href="https://markets.coinpedia.org/" rel="noopener noreferrer nofollow">crypto market</a> cap dropped from $3.24 trillion to $3.07 trillion in a few hours. The Crypto Fear &amp; Greed Index also fell to 29, showing strong fear among traders.&nbsp;</p>
<p>The crash triggered massive liquidations worth <a href="https://www.coinglass.com/LiquidationData" rel="noopener noreferrer nofollow">more than $520 million</a> in 24 hours. Around $379 million came from long positions alone, meaning traders betting on rising prices were wiped out.</p>
<p>However, Bitcoin options worth $3.56 billion are also expiring tomorrow. The put/call ratio of 1.09 shows many traders are positioning for more downside.</p>
<h2 class="wp-block-heading" id="h-on-chain-indicators-show-bears-in-control">On-Chain Indicators Show Bears in Control</h2>
<p>On-chain data show rising pressure. Cryptoquant data shows that the Bitcoin Bull Score fell back to 0, showing extreme bearish sentiment.&nbsp;</p>
<p>Meanwhile, realized losses are now at -18%, still far from the historical “buy zone” of -37%.</p>
<figure class="wp-block-image size-large">
 <img width="1024" height="287" src="https://image.coinpedia.org/wp-content/uploads/2025/12/11160208/image-103-1024x287.png" alt="Cryptoquant sentiment data">
</figure>
<p>Interestingly, about $6 billion worth of short positions are at risk. If Bitcoin suddenly jumps to $100,000, these shorts will be liquidated, causing a “domino effect” that could send prices soaring.</p>
<h2 class="wp-block-heading" id="h-bitcoin-struggles-below-95k-holds-key-90k-support">Bitcoin Struggles Below $95K, Holds Key $90K Support</h2>
<p>Further analysis the bitcoin chart, Crypto trader <a href="https://x.com/CRYPTOPALACE_/status/1999054593645273495" rel="noopener noreferrer nofollow">Crypto Palace added</a> more pressure to the discussion with a fresh chart breakdown.</p>
<p>According to him, Bitcoin once again failed to break through the tough $95,000 resistance, and right after the Fed’s rate-cut news, the market reacted with a sharp pullback.</p>
<p>BTC is now retesting the $90,000 zone, which has turned into a major short-term support.&nbsp;</p>
<figure class="wp-block-image size-full">
 <img width="900" height="396" src="https://image.coinpedia.org/wp-content/uploads/2025/12/11160207/image-34.jpeg" alt="bitcoin price chart">
</figure>
<p>However, staying above this level keeps the bullish structure alive, but a daily close below it could open the way to deeper declines toward $87,000.</p>
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1765450252946">
  <strong><strong>How did the Federal Reserve cause the crypto market crash?</strong></strong>
  <p>The Fed cut rates but warned no more cuts are likely soon. This drove investors away from risk assets, triggering sharp selling in Bitcoin.</p>
 </div>
 <div class="schema-faq-section" id="faq-question-1765450432509">
  <strong><strong>Is the Bitcoin crash a sign of a new bear market starting?</strong></strong>
  <p>Not yet. The drop reflects short-term panic, but the long-term trend stays intact unless Bitcoin breaks below the $87K support.</p>
 </div>
 <div class="schema-faq-section" id="faq-question-1765450518945">
  <strong><strong>Are Bitcoin options expiring this week adding to volatility?</strong></strong>
  <p>Yes. With $3.56B in options expiring and a high put/call ratio, price swings may increase as traders hedge positions.</p>
 </div>
</div>

Bitcoin Crashes Below $90K as $520M Liquidations Hit, On-Chain Data Hint Deeper Crash

Table of Contents

CoinPedia News

Other articles published on Dec 11, 2025

Join our free newsletter for daily crypto updates!