Bitcoin fell below $90,000 on Tuesday morning in Asia, wiping out all of its gains for 2025. Traders are taking a defensive stance, with big buyers stepping back and demand for protective options spiking.
Deribit data shows heavy activity at the $85,000 and $80,000 strikes, especially for contracts expiring later this month. Over $740m in November expiry contracts have been snapped up, far surpassing bullish bets.
Spot buying is scarce. Investors who bought Bitcoin over the past six months are sitting deep in losses, reducing fresh demand. Companies holding large crypto reserves are feeling the heat. Michael Saylor’s Strategy Inc. added $835m more Bitcoin, but others are under pressure to sell to protect their balance sheets.
The market is stuck between hesitation and fear. CoinMarketCap’s sentiment index shows crypto participants in “extreme fear”.
It’s not just crypto under pressure. Gold, often a safe haven, is also retreating. Investors are jittery over the AI trade, missing economic data, and shifting expectations for a potential Fed rate cut in December. Equities, including the S&P 500 and tech-heavy Nasdaq, have been sliding as caution spreads.
The slump follows a $19bn liquidation wave in early October. Analysts say the selloff is driven by macro nerves and crowded positioning.
Sentiment remains fragile, and the market is bracing for more volatility.