Bitcoin Below $90K Sparks Extreme Buy Zone Opportunities

The cryptocurrency market is experiencing one of its most significant corrections in recent months, with Bitcoin falling below the $90,000 threshold for the first time since its previous downturn. This decline has pulled the entire digital asset ecosystem deep into negative territory, creating conditions that analytics firm Santiment has identified as generating ‘extreme pain’ for active traders. According to Santiment’s Market Value to Realized Value (MVRV) metric, which helps identify potential buy-low zones, the majority of cryptocurrencies are now flashing signals of extreme negative returns for traders who have been active over the past month.

Cardano leads the pack with average trader returns sitting at -19.7%, placing it firmly in what Santiment categorizes as an ‘Extreme Buy Zone.’ It is followed closely by Chainlink at -16.8% and Ethereum at -15.4%, both of which also occupy the same extreme buying territory. Meanwhile, Bitcoin itself, despite being down -11.5%, is positioned in a ‘Good Buy Zone’ alongside Ripple’s XRP, which shows average trader returns of -10.2%. Santiment’s analysis suggests that in a zero-sum market environment, buying assets when the average trade returns of other market participants are deeply negative increases the probability of a rapid price recovery.

The current market sentiment represents a dramatic shift from just six weeks ago, when the cryptocurrency community was celebrating Bitcoin hitting a new all-time high past $126,000. As of the current analysis, the number one cryptocurrency is down by approximately 4.4% since the start of 2025, with the overall crypto market capitalization having fallen by 13.5% in the past week alone.

Market analysts have identified several key factors driving the current cryptocurrency downturn. Record outflows from US spot Bitcoin ETFs over three consecutive weeks have created significant selling pressure, while institutional selling has been indicated by the Coinbase Premium hitting a nine-month low. These factors have combined to create a perfect storm of negative momentum that has affected virtually all major digital assets.

The institutional selling pressure, as measured by the Coinbase Premium, provides particular insight into the behavior of larger market participants. When this metric hits multi-month lows, it typically indicates that institutional investors are either reducing their exposure or moving their holdings to offshore exchanges, both of which contribute to downward price pressure. The consistent outflows from US spot Bitcoin ETFs further compound this effect, removing a significant source of buying pressure that had previously supported price levels.

The current market climate has naturally spawned a wave of fear and negative predictions across social media platforms. Santiment’s deep dive into social data from November 18, 2025, noted a clear shift in trader sentiment toward bearish expectations. While there are signs that some confidence remains—evidenced by discussions about buying the dip reaching an eight-month high—price predictions have become significantly more pessimistic.

Mentions of Bitcoin falling to between $40,000 and $80,000 now dominate conversations, representing a stark contrast to the calls for $130,000 and above that were prevalent during Bitcoin’s October peak. However, such widespread pessimism has historically been viewed by market analysts as a contrarian indicator, often signaling that a market bottom may be approaching.

The Kobeissi Letter provided crucial long-term perspective for investors navigating the current volatility, reminding market participants that since 2017, Bitcoin has experienced over ten declines of 25% or more, with each one eventually being followed by new record highs. They characterize the latest episode as a ‘routine’ crypto downturn that may be closer to its end than its beginning, suggesting that historical patterns of recovery following significant corrections remain intact.