Analysis: Bitcoin falls below $90,000, institutional investors are the main selling force

Bitcoin fell below a new local low of $90,000 late on Monday, hitting its lowest level in seven months. "Bitcoin fell below the $90,000 mark in today's trading session, and the loss of this important psychological line of defense highlights the fragility of the current market," said Rachael Lucas, cryptocurrency analyst at BTC Markets. "Institutional investors are the main driver of the sell-off, and the outflow of ETF funds shows that investors are taking profits and taking safe-haven positions before the end of the year." Bitcoin's long-term value as digital gold has not changed, but short-term sell-offs by traders, leveraged players and funds adjusting their exposure are weighing on prices, "said Vincent Liu, chief investment officer at Kronos Research." Bitcoin's fall below $90,000 is a short-term pullback, and 85,000 to $87,000 is the near-term support range, "Liu said." Recovering the $90,000 mark is crucial for buyers to rebuild confidence, especially with the current Fear and Greed Index at only 11 and market sentiment still relatively subdued. "