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(Bloomberg) —<\/span> Bitcoin is in free fall \u2014 and traders are positioning for more pain.<\/p>\n Most Read from Bloomberg<\/p>\n The world\u2019s largest cryptocurrency plunged below $90,000 on Tuesday morning during Asia trading, deepening a selloff that\u2019s erased all of its gains for the year. In the options market, traders are making increasingly bearish wagers, on the conviction that the slide is far from over as deep-pocketed buyers beat a retreat.<\/p>\n The shift in sentiment has been swift and sharp. Demand for downside protection at the $85,000 and $80,000 levels has surged. Protective options expiring later this month are seeing especially heavy activity, according to data from Coinbase-owned Deribit.<\/p>\n After riding Bitcoin to the highs just weeks ago, traders have snapped up more than $740 million worth of contracts betting on continued declines expiring in late November \u2014 far outpacing interest in bullish positions.<\/p>\n \u201cThe absence of conviction-based spot demand has become increasingly apparent as buyers who accumulated positions over the last six months now find themselves significantly underwater,\u201d said Chris Newhouse, director of research at Ergonia, a firm specializing in decentralized finance.<\/p>\n The pain has been concentrated in companies known as digital-asset treasuries \u2014 firms that stockpiled large amounts of cryptocurrencies earlier this year in an effort to become crypto-hoarding bets in the stock market. While Michael Saylor\u2019s Strategy Inc. just bought another $835 million worth of Bitcoin, some of his corporate peers are facing growing pressure to sell assets to protect their balance sheets.<\/p>\n That selling has created a psychological overhang: A market crowded with investors who are too deep in the red to buy more, but not yet ready to cut their losses.<\/p>\n A sentiment index compiled by data-analytics platform CoinMarketCap \u2014 tracking price momentum, volatility, derivatives, and more \u2014 indicates crypto participants are mired in a state of \u201cextreme fear.\u201d<\/p>\n Larger economic forces are weighing on sentiment, too. Traders are eyeing Wednesday\u2019s earnings from Nvidia Corp. \u2014 a bellwether for tech and speculative risk \u2014 as well as shifting expectations for a possible interest-rate cut from the Federal Reserve in December. The S&P 500 fell more than 1%, hitting sentiment for risk assets of all stripes.<\/p>\n<\/p><\/div>\n \u201cI think the Fed and AI bubble talk are two major headwinds for crypto and risk assets heading into the end of the year,\u201d said Adam McCarthy, a research analyst at Kaiko. \u201cThe AI risk is likely compounding and affecting risk sentiment in crypto, adding that to the chatter from FOMC officials, you\u2019re looking at a sustained downtrend for Bitcoin.\u201d<\/p>\n Ethereum\u2019s token, Ether, is proving especially vulnerable. The world\u2019s second-largest cryptocurrency slumped to $2,946 on Tuesday, bringing its decline to more than 20% since early October.<\/p>\n \u201cEther is very vulnerable to this theme as the biggest digital asset treasury firms are currently underwater on their positions,\u201d said Greg Magadini, director of derivatives at Amberdata.<\/p>\n The broader market has been reeling since a sharp liquidation wave in early October erased about $19 billion in digital assets. Open interest in crypto futures contracts has dropped, particularly in smaller tokens like Solana, where positioning has fallen by more than half, according to Coinglass data.<\/p>\n \u201cThat riskoff tone spills into crypto markets, where sentiment remains fragile \u2014 the latest drawdown reflects broader macro jitters rather than structural flaws,\u201d said Thomas Perfumo, global economist at crypto exchange Kraken.<\/p>\n (Updates prices, data)<\/p>\n Most Read from Bloomberg Businessweek<\/p>\n \u00a92025 Bloomberg L.P.<\/p>\n<\/p><\/div>\n (Bloomberg) — Bitcoin is in free fall \u2014 and traders are positioning for more pain. Most Read from Bloomberg The world\u2019s largest cryptocurrency plunged below $90,000 on Tuesday morning during Asia trading, deepening a selloff that\u2019s erased all of its gains for the year. In the options market, traders are making increasingly bearish wagers, on … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":10244,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-10243","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/11\/Fear-Engulfs-Bitcoin-Traders-Betting-on-Free-Fall-to-80000.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/10243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10243"}],"version-history":[{"count":1,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/10243\/revisions"}],"predecessor-version":[{"id":10245,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/10243\/revisions\/10245"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/media\/10244"}],"wp:attachment":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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