SKN | Bitcoin Slips Below $90,000 as Altcoins Extend Losses in Thin Crypto Trading

Bitcoin fell below the closely watched $90,000 threshold during subdued trading conditions, dragging major altcoins lower as liquidity thinned across global crypto markets. The move reflects a broader pullback in risk assets, with investors weighing tighter financial conditions, regulatory uncertainty, and fading short-term momentum after recent highs.

The decline underscores how fragile sentiment remains in digital assets, particularly during periods of reduced volume when price swings can be amplified.

Market Reaction: Low Liquidity Exacerbates Price Moves

Bitcoin was last trading near $89,300, down roughly 4% over the past 24 hours, according to aggregated exchange data. The pullback came amid noticeably thin trading volumes, with spot turnover across major venues falling more than 25% from the recent weekly average.

Losses were more pronounced among altcoins. Ethereum declined about 5% to near $4,600, while high-beta tokens such as Solana and Avalanche fell between 6% and 9%. Market participants noted that reduced liquidity, particularly during Asian and early European sessions, amplified downside volatility as relatively small sell orders pushed prices lower.

Derivatives and Technical Signals: Momentum Cools

In derivatives markets, funding rates on perpetual futures compressed toward neutral, signaling a cooling of leveraged bullish positioning. Open interest in Bitcoin futures declined by approximately 8% over the past two days, suggesting that traders are reducing exposure rather than aggressively adding shorts.

From a technical perspective, the break below $90,000 places focus on the next support zone around $87,000–$88,000, an area that previously attracted dip-buying interest. Analysts cautioned, however, that in low-volume environments, technical levels can be tested quickly without signaling a broader trend reversal.

Investor Sentiment: Caution Replaces Recent Optimism

Sentiment indicators point to a shift from optimism toward short-term caution. Crypto volatility indices moved higher, while options markets showed increased demand for downside protection, particularly in near-dated Bitcoin contracts.

Institutional desks reported that many allocators are adopting a wait-and-see approach, preferring to reassess positioning once liquidity improves and clearer macro signals emerge. This behavior reflects a broader strategic mindset: preserving flexibility during periods of uncertainty rather than chasing momentum.

Macro and Regulatory Context: Persistent Overhang

The pullback comes as global markets continue to digest mixed economic data and evolving expectations around interest rates. At the same time, ongoing discussions around crypto regulation in the United States and Europe remain a structural overhang, limiting aggressive risk-taking.

Historically, periods of thin liquidity combined with macro uncertainty have produced short-lived but sharp corrections, even within broader uptrends.

Looking ahead, traders will be watching whether Bitcoin can reclaim the $90,000 level as liquidity returns, or whether further consolidation is needed to rebuild confidence. Near-term direction is likely to hinge on volume recovery, derivatives positioning, and broader risk sentiment across global markets.