Bitcoin Slumps to $90,000 Amid Reassessment of Crypto Allocation

Bitcoin has dropped to around $90,000, marking a notable decline from recent highs and sparking renewed debate over the appropriate level of crypto exposure in diversified portfolios. The price shift has prompted asset managers and financial advisors to reevaluate strategic allocations, particularly for investors with significant holdings in BTC-USD and ETH-USD. Market participants are now weighing the implications of volatility, regulatory uncertainty, and macroeconomic trends on digital asset valuations. The move follows increased institutional involvement in crypto markets, with firms such as BlackRock and Fidelity offering formal guidance on digital asset positioning. These entities are encouraging investors to consider downside risk, especially given that BTC-USD has retraced over 30% from its November 2025 peak. Analysts note that while long-term fundamentals remain intact, near-term price corrections may test investor resilience. Key metrics highlight the current volatility: Bitcoin’s 30-day volatility has risen to 72%, up from 48% in early November, while on-chain data shows a 12% decline in active addresses over the same period. ETH-USD has also fallen to $3,850, reflecting broader sentiment in the altcoin sector. These figures suggest a market digesting recent gains and adjusting to new macroeconomic conditions. Financial advisors are advising a tiered approach—limiting crypto exposure to 5–10% of total portfolios for most investors—and emphasizing the importance of liquidity and risk tolerance. The shift may influence both retail and institutional capital flows, particularly in U.S.-based funds offering crypto-linked ETFs. Market participants are closely monitoring developments in regulatory clarity and exchange-traded product performance to gauge future direction.