Related Articles
Bitcoin’s rollercoaster took another plunge early Friday in Hong Kong, careening below $85,500 according to CoinDesk. A fresh sell-off tsunami crashed into the crypto market, amplified by the shifting tides of global interest rate forecasts.
Bitcoin’s freefall continues. A brutal 24 hours has shaved off over 7%, compounding a painful monthly slide exceeding 20%. While stocks cling to Nvidia’s AI-fueled afterglow, shrugging off bubble anxieties, Bitcoin’s plunge paints a starkly different picture.
(CoinDesk)
Bitcoin’s price is struggling, and here’s why: Dormant wallets, some untouched for years, are suddenly dumping massive amounts of Bitcoin onto exchanges, overwhelming the market with supply. Market maker FlowDesk, in a Telegram note, points to “tens of thousands of coins” flooding centralized exchanges from these long-slumbering Bitcoin stashes as the key culprit.
Bids are drowning under a tidal wave of selling pressure, leaving spot markets firmly in the hands of sellers. As year-end approaches, fund managers are battening down the hatches, prioritizing portfolio preservation over chasing further gains. This risk-off mentality has sucked liquidity from crucial support levels, leaving the market vulnerable.
FlowDesk spots a chilling echo in derivatives markets: spot market jitters amplified. Big BTC and ETH buyers are running for the exits, while traders, clinging to protection, are desperately shuffling put positions as volatility skews precariously towards the downside.
Deribit’s options market is flashing red: the bullish $140,000 call option, once the king of crypto optimism, has been dethroned. Now, fear reigns supreme as the $85,000 put option swells, boasting the largest open interest. Traders are bracing for impact, betting that Bitcoin’s descent is far from over.
Bitcoin teeters, and MicroStrategy sweats. All eyes fixate on MSTR as BTC nuzzles dangerously close to its $74,430 breaking point – a financial high-wire act with no net.
JPMorgan points to a looming threat for the stock: potential expulsion from the MSCI index this January. This isn’t just a technicality; it could unleash billions in passive outflows, adding fuel to the fire in an already volatile crypto market. The stock’s recent slump hints at growing investor jitters.
Thanks for reading BTC Falls Toward Mid-$80Ks as Market Structure Weakens Into Year-End
