Last night, U.S. stocks plunged across the board: the Nasdaq tumbled 2.15%, while the S&P 500 and Dow Jones dropped 1.56% and 0.84%, respectively. This stock market storm didn’t spare the crypto market—Bitcoin plummeted all the way down to $89,253, hitting a nearly seven-month low. The total crypto market cap evaporated by over $300 billion, and the fear index soared.

There were three heavy blows behind this crash:

First, political turmoil. A former president publicly pressured the Treasury Secretary, demanding the Fed cut rates immediately or be replaced. Such direct interference with the central bank sent market nerves into overdrive, triggering a massive flight to safety.

Second, hawkish statements from Fed officials. The market initially expected a 70% chance of a rate cut in December, but after several policymakers made strong statements, that probability plunged to 35%. The high interest rate environment continues to drain liquidity, and risk assets simply can’t withstand it.

The final straw was the tech stock meltdown. Despite Nvidia’s stellar earnings report, its stock was aggressively sold off, losing $400 billion in market value in a single day. The fading AI frenzy dragged down the entire tech sector, and the recent correlation between Bitcoin and tech stocks has been unusually strong.

How brutal was this wipeout in crypto? Bitcoin’s monthly drop exceeded 25%, Ethereum lost the $3,000 mark, and total liquidations across the network reached $580 million, with over 160,000 traders forcibly closed out.

But historical experience tells us that Fed policy turning points are often the starting point for Bitcoin rebounds. The current RSI indicator has already entered oversold territory, and the $88,000–$90,000 range is showing strong support. After such a sharp decline, opportunities to build positions in batches may be right in front of us.

Do you think this drop is a correction or a trend reversal? Are you daring enough to buy below $90,000?