Bitcoin Slips Back Below $90K — Crypto Correction Now Ranks Among Worst Since 2017, K33 Says

Bitcoin Slips Back. Bitcoin has slipped back below the psychologically important $90,000 level, rattling traders who had grown used to a seemingly unstoppable uptrend. According to K33 Research, the current Bitcoin price correction—a nearly 30% drop from the early-October all-time high near $126,000—now ranks among the worst drawdowns since 2017 when measured over a 43-day window.

At the time of writing, Bitcoin (BTC) trades around the mid-$80,000s after losing more than 4% in a single U.S. trading session. Ether has followed suit, sliding below $3,000, while crypto-exposed equities and miners have posted even steeper declines. The mood across the market has flipped from euphoria to extreme fear, as highlighted by sentiment indices and ETF outflows.

Yet big moves like this never happen in a vacuum. This is not just a random dip; it is a confluence of ETF outflows, macro uncertainty, high leverage unwind and shifting expectations around Bitcoin’s role in portfolios. K33’s head of research, Vetle Lunde, notes that this particular drawdown is historically significant, and that it may still have room to run before a durable bottom forms.

In this article, we will unpack why Bitcoin slipped back below $90K, what K33’s analysis tells us about the current crypto market correction, and what traders and long-term investors can realistically expect next.

Why Bitcoin Fell Back Below $90,000

The drop below $90,000 is the result of several overlapping forces rather than a single headline event. To understand why this correction has become one of the worst since 2017, we need to look at price history, leverage, ETF flows and broader market sentiment. Bitcoin Slips Back.

A 30% Drawdown in 43 Days: K33’s Historical Context

In early October, Bitcoin price surged to a new all-time high near $126,000, fueled by aggressive leverage, strong spot demand and continued enthusiasm around spot Bitcoin ETFs and institutional flows.

From that peak, BTC has fallen almost 30% over just 43 days, placing this decline among the steepest mid-cycle corrections since March 2017 when viewed over a similar time window. According to K33, only a handful of drawdowns in recent cycles match this combination of depth and speed. That context matters: we are not looking at an ordinary 10–15% dip but a deep Bitcoin market correction that is now statistically significant compared to previous cycles. Bitcoin Slips Back.

Historically, strong bull markets in Bitcoin have often included vicious pullbacks of 25–40% that reset leverage and sentiment before the next leg higher.

ETF Outflows and the “Cost Basis” Squeeze

K33 highlights one critical factor behind the crypto sell-off: sustained outflows from U.S. spot Bitcoin ETFs. Over just five consecutive trading sessions, investors pulled roughly $2.3 billion from these products, forcing ETF issuers and market makers to offload BTC on spot markets. Bitcoin Slips Back.

K33 notes that BTC “swept lows below the average cost basis of U.S. BTC ETFs,” a level that should have attracted some dip-buyers but also triggered stop-losses from more tactical funds. When ETFs, which had been a structural source of demand, turn into net sellers, the Bitcoin price correction can accelerate rapidly.

Liquidations and Leverage: The Hidden Fuel of the Crash

Another key driver behind Bitcoin slipping back below $90K has been the unwinding of leverage across derivatives markets. Futures and perpetual swaps had built up high open interest at elevated prices. When the trend reversed, this leverage became a liability rather than an advantage. Bitcoin Slips Back.

K33 and other researchers have previously warned that crypto exchanges may underreport liquidation data, meaning that the official numbers often underestimate the real scale of forced selling. That suggests the true intensity of this leverage flush may be even larger than on-chain dashboards imply.

As price broke successive support levels—first $110,000, then $100,000, and now $90,000—cascading liquidations forced traders out of long positions. This mechanical selling does not care about fundamentals or long-term narratives; it simply dumps BTC into the market to close margin calls, deepening the BTC crash and feeding panic sentiment. Bitcoin Slips Back.

Macro Pressures and “Ignored Risks”

Bitcoin’s slump is also happening against a volatile macro backdrop. K33 has recently warned that “ignored macro catalysts” could snap markets out of their comfortable numbness near record highs and trigger renewed selling. Bitcoin Slips Back.

all feed into how institutions view Bitcoin as a risk asset. Although some investors treat BTC as digital gold or an inflation hedge, large funds still tend to trade it as part of a broader risk-on/risk-off complex. The fact that Bitcoin fell even as U.S. stocks managed small gains highlights just how fragile crypto market sentiment has become.

How Bad Is This Crypto Correction Compared to Past Cycles?

Any time Bitcoin dives, the big questions are: Is this just another healthy pullback in a bull market, or the start of a longer bear phase? K33’s data offers a nuanced answer.

Among the Worst Since 2017 – But Not the Worst Ever

K33’s analysis focuses on drawdowns of more than 50 days since March 2017. Within that dataset, the current roughly 30% drop over 43 days ranks among the harsher corrections, but still falls short of the brutal crashes seen in events like the March 2020 “Covid crash” or the 2022 bear-market meltdown. From a purely historical lens, Bitcoin has survived multiple drops larger than this and gone on to set new highs later. Bitcoin Slips Back.

The Four-Year Cycle Debate: Is This a New Regime?

Traditionally, many traders framed Bitcoin’s behavior around the four-year halving cycle, expecting major tops and bottoms to cluster around halving dates. K33 researchers have recently argued that this pattern may be breaking down as institutional adoption and policy shifts take over as the main drivers.

Treasuries, Equities and the Contagion Effect

One striking knock-on effect of this correction has been the hit to Bitcoin-exposed equities and public companies holding BTC on their balance sheets. The Coin desk report notes that names like Strategy (MSTR), BitMine (BMNR), Circle (CRCL) and several miners dropped 8–9% as BTC slipped below $90K.

Separately, K33 research shows that roughly one in four public Bitcoin treasury firms now trades below the value of their BTC holdings, i.e., at a discount to their net asset value. This erodes their ability to raise capital and accumulate more BTC, weakening one of the structural demand sources that supported the past bull phase..

What K33 Expects Next for Bitcoin

K33’s latest commentary does not try to call a perfect bottom, but it does outline important levels and scenarios to watch as BTC trades back below $90,000. Bitcoin Slips Back.

Potential Bottom Zone: $84,000–$86,000

According to K33’s Vetle Lunde, if the current drawdown behaves similarly to the two deepest pullbacks of the past two years, Bitcoin could find a local bottom in the $84,000–$86,000 range. In practical terms, that means the Bitcoin price drop below $90K might be closer to the end than the beginning—if the market follows a “typical” mid-cycle shakeout. However, there is no guarantee that history will repeat, especially in a new institutional regime.

The Bearish Scenario: A Retest of the April Low Around $74K

K33 also sketches a more pessimistic scenario. If BTC fails to stabilize near $84K–$86K, the next logical destination would be a retest of the April low around $74,000, which also lines up with the average entry price reported for some large corporate holders such as MSTR-style Bitcoin treasury firms. Bitcoin Slips Back.

Long-Term View: Structural Demand vs. Cyclical Pain

Despite the current turmoil, K33 and other institutional researchers still highlight strong structural drivers for Bitcoin:

In this context, the Bitcoin correction below $90,000 can be viewed as a painful reset in an evolving, more institutional market. The presence of large, sophisticated players does not eliminate volatility; it simply changes who is on the other side of the trade. Bitcoin Slips Back.

What This Means for Traders and Long-Term Investors

When Bitcoin slips under key psychological levels like $90K, emotions take over. Yet rational decision-making requires separating trading horizons and understanding risk.

In such an environment, the key is not guessing the exact bottom but managing risk. Tight stop-losses, reduced leverage and awareness of liquidation cascades are crucial. This environment favors nimble traders who understand the dynamics of crypto derivatives, not blind leverage. Bitcoin Slips Back.

For Long-Term Holders

Long-term holders who believe in Bitcoin’s multi-year thesis have seen this movie before, albeit at much lower price levels. Historically, large drawdowns inside broader uptrends have often presented opportunities for gradual accumulation rather than panic exits. The key difference today is that long-term holders are sharing the stage with ETFs, hedge funds and public companies, all of which can magnify both upside and downside.

Conclusion

Bitcoin’s slip back below $90,000 is more than just another red day on the chart. It marks a deep and technically significant Bitcoin price correction that K33 Research now ranks among the worst mid-cycle drawdowns since 2017. With nearly 30% shaved off from the early-October all-time high of around $126,000 in just 43 days, the market is undergoing a serious reset in sentiment, leverage and positioning. Bitcoin Slips Back.

ETF outflows, forced liquidations and macro jitters have combined to create a powerful crypto market sell-off that has dragged BTC, altcoins and crypto-exposed equities sharply lower. K33’s analysis suggests a potential bottom in the $84,000–$86,000 region, but also flags the risk of a deeper move toward the April low near $74,000 if selling persists.

At the same time, the bigger picture shows that Bitcoin is not simply repeating its old four-year cycle pattern. Instead, it is evolving into a macro asset shaped by institutional flows, policy decisions and complex market structure. In this new regime, corrections of this magnitude may become a recurring feature rather than an anomaly.

For traders, the focus should be on managing risk amid elevated volatility. For long-term believers in Bitcoin’s digital-asset thesis, the slide below $90K is a sobering reminder that even in a maturing market, BTC remains volatile, unpredictable and heavily influenced by leverage and sentiment.

As always, none of this is financial advice. It is a snapshot of how and why Bitcoin slipped back below $90K, what K33’s data tells us about this drawdown, and what scenarios lie ahead in one of the most closely watched markets in the world. Bitcoin Slips Back.

FAQs

Q. Why did Bitcoin slip back below $90K?

Bitcoin fell below $90,000 due to a combination of ETF outflows, leverage unwinds in derivatives markets, and macro uncertainty. K33 notes that the price drop from the early-October high near $126,000 to the mid-$80,000s represents a nearly 30% drawdown over 43 days, making it one of the steepest corrections since 2017.

Q. How bad is this correction compared to previous Bitcoin crashes?

While this Bitcoin correction is among the worst mid-cycle drawdowns in the post-2017 era, it is not the worst ever. Events like the March 2020 Covid crash and the 2022 bear market saw even larger percentage declines. However, given today’s much higher price levels and the involvement of ETFs and public companies, the current drawdown carries outsized market impact. Bitcoin Slips Back.

Q. What levels is K33 watching for a potential Bitcoin bottom?

K33’s Vetle Lunde suggests that if this drawdown mirrors the deepest pullbacks of the past two years, a local bottom may form between $84,000 and $86,000.

Q. How are ETFs affecting Bitcoin’s price during this downturn?

Spot Bitcoin ETFs have shifted from being a major source of demand to a source of selling pressure. Over five consecutive sessions, they saw about $2.3 billion in outflows, forcing issuers to sell BTC on spot markets. Once price dropped below the average ETF cost basis, redemptions and risk-off behavior intensified, amplifying the downward move below $90K. Bitcoin Slips Back.

Q. Is Bitcoin’s four-year halving cycle still relevant after this correction?

K33 argues that Bitcoin’s classic four-year halving cycle may be losing relevance as institutional adoption, sovereign interest and macro policy become the primary drivers of BTC’s price.