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On Wednesday, Bitcoin (BTC) prices plummeted to four-month lows, reaching as low as $81,000 as the market’s expected “Trump Bump” faded. This has led investors and traders to hedge further declines, and Bitcoin options have shown significant interest Put the options Act price of $70,000.
Bitcoin has shrunk by 20% since Trump’s inauguration
According to For data from Deribit, the biggest crypto option exchange, the strike price represents the second highest open interest of all contracts expired on February 28th, with a total of $4.9 billion in public interest posed to expire by Friday.
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Since President Donald Trump took office in January, Bitcoin has experienced a massive decline of around 20% from its record high.
Market analysts believe the recession is attributed to a combination of factors, including Trump’s “active geopolitical” stance and continued concerns about the rise. inflation.
“Tax policy is attenuating the outlook even further, with stubbornly high short-term inflation expectations calling for overall attention,” said Chris Newhouse, research director at Cumberland Labs.
Newhouse also highlighted Bybit Ethereum (eth) Hack not only put downward pressure on Bitcoin prices, but also negatively affected sentiment across the market.
Investors pull back amid declining demand for ETFs
According to Coinglass data, the market has witnessed a major liquidation of bullish bets, wiping out roughly $2 billion over the past three days.
Bitcoin A permanent future– A common way for offshore investors to take advantage of their positions is to carry out a sharp decline in long positions during this time frame.
In addition to bearish sentiment, demand for Bitcoin Exchange Trade Funds (ETFs) has declined, with the group experiencing around $2.1 billion in the past six days.
This reflects a broad trend for investors to pull back, with over $1 billion being withdrawn from spot Bitcoin ETFs on Tuesday alone, marking the biggest outflow since those funds debuted last January. The Fidelity Bitcoin Fund (FBTC) and the BlackRock Isshares Bitcoin Trust ETF (IBIT) were hit hardest.
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Bohan Jiang, head of over-the-counter options trading at Abra, commented: In my view, almost all of this is from an ETF spot leak from directional traders. ”
Ethereum also feels the impact of Bibit Incidentamplifies its volatility Solana (Sol) has surrendered the profits achieved in recent months amid declining interest in Memecoin.
Searching the market for new catalysts to overturn bearish sentiments, many investors remain on the sidelines and spinning from cryptocurrency in a risk-off environment.
“Crypto Market is still looking for a new catalyst to overturn bearish feelings,” said Ravi Doshi, market co-head at Crypto Prime Broker Falconx.
Currently, BTC is trying to find support at $84,578, but it’s down an additional 4.5% over the 24-hour time frame.
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