The cryptocurrency market correction, led by Bitcoin (BTC), has entered its third consecutive day. Over the past 24 hours, Bitcoin has shed another 3.5% of its value, reaching an intraday low of $92,785. This marks the largest single-day drop for BTC since Donald Trump’s U.S. election victory. What’s behind this downturn? Experts cite several reasons, including the expiration of monthly Bitcoin options, fears surrounding Trump’s tariffs, profit-taking, and ETF outflows.
Bitcoin Falls Below $93,000: Key Levels in Play
Bitcoin briefly dipped below the critical $93,000 support level before recovering slightly to $94,512, a 4% drop on the day. Despite the rebound, sentiment around Bitcoin reaching $100,000 has weakened. Meanwhile, trading volume surged by 60% to $84.84 billion, reflecting intense market activity.
This decline coincides with reports from Reuters about Donald Trump, the newly elected U.S. President, announcing additional tariffs on imports from China, Mexico, and Canada. The resulting sell-off in U.S. stock futures has extended to Bitcoin and crypto indices, amplifying bearish pressure.
Markets Await FOMC Data: What’s Next for Bitcoin?
The drop in Bitcoin has been mirrored by significant declines in other major tokens like Solana (SOL), BNB, Cardano (ADA), and Dogecoin (DOGE), all of which have fallen up to 7% in the past 24 hours. Analysts view the roughly 10% pullback from Bitcoin’s recent highs as a natural correction.
Tony Sycamore, a market analyst at IG Australia Pty, emphasized that the pullback is not necessarily a sign of a downward trend. Instead, he described it as a much-needed cooldown from overbought conditions, reminding traders that “markets, including crypto, do not move in straight lines forever.”
Key Drivers of Bitcoin’s Decline
- Bitcoin Options Expiration
On Friday, Bitcoin options worth a total of $9.4 billion will expire. Analysts warn that this could fuel heightened price volatility. According to Deribit data, the put/call ratio stands at 0.83, with the “maximum pain” point at $78,000. Open interest, predominantly centered around $82,000 call options and $70,000 put options, has risen by 2% to $42.6 billion. - Profit-Taking
With Bitcoin recently rejecting the $100,000 level, some investors are taking profits off the table, adding selling pressure to the market. - ETF Outflows
The ETF market has seen notable outflows, signaling reduced institutional interest in Bitcoin at current levels. - Macroeconomic Concerns
Core PCE data, expected on Wednesday, will likely impact risk assets, including Bitcoin. This inflation metric could influence the Federal Reserve’s policy stance. An uptick might dampen hopes for a December rate cut, keeping risk sentiment low across markets.
Bitcoin Dips Below $93K as Market Faces Third Day of Correction
Bitcoin’s price correction extended into a third consecutive day, with the flagship cryptocurrency falling as low as $92,785 before a modest rebound. This marks its steepest single-day drop since Donald Trump’s election victory. Experts cite a convergence of bearish catalysts—expiring Bitcoin options totaling $9.4 billion, profit-taking from recent highs, ETF outflows, and macroeconomic fears, including Trump’s renewed tariff policies and anticipation around the Federal Reserve’s inflation metrics.
Despite the intense 60% surge in trading volume and a 4% daily decline, analysts suggest this is a natural cooldown after an overbought rally. Tony Sycamore of IG Australia noted that markets “don’t move in straight lines,” while other analysts, like Credible Crypto and Joe Consorti, warn of further volatility if key levels break.
Meanwhile, institutional sentiment remains cautiously optimistic: MicroStrategy and Semler Scientific continue to accumulate Bitcoin, reinforcing long-term faith in the asset despite near-term downside risks. With key support levels in play and eyes on upcoming FOMC data, the coming days will be pivotal in determining whether this correction deepens or sets the stage for Bitcoin’s next move toward $100,000.
Looking Ahead: Risks and Opportunities
Popular crypto analyst Credible Crypto warned traders to be cautious about adding long positions, as Bitcoin’s breach of $94,000 could open doors to the $80,000 range. However, this decline is unlikely to occur immediately. Meanwhile, Joe Consorti highlighted Bitcoin’s close correlation with global M2 money supply trends, warning of a potential 20-25% correction if this relationship holds.
On the other hand, large investors remain undeterred. MicroStrategy recently purchased 55,000 BTC, while Semler Scientific also increased its Bitcoin holdings, signaling long-term confidence in the asset.
FAQs
1. Why is Bitcoin dropping this week?
Bitcoin is down due to options expiration, Trump’s new tariff fears, ETF outflows, profit-taking, and macroeconomic uncertainty.
2. What is the “maximum pain” point for Bitcoin options this week?
The max pain point is $78,000, which suggests a high likelihood of volatility near that level as options expire.
3. Are institutions still buying Bitcoin?
Yes, MicroStrategy and Semler Scientific have recently increased their BTC holdings, signaling continued institutional confidence.
4. What are analysts predicting if Bitcoin falls further?
If BTC breaks below $94K convincingly, it could revisit the $80K range, though a full correction may take time.
5. Could this be a long-term bullish setup?
Some analysts view this as a healthy pullback from overbought conditions, possibly setting up for a stronger long-term rally.
Glossary of Key Terms
Bitcoin Options Expiration: Derivatives contracts that give holders the right to buy or sell BTC at set prices. Expiration often brings volatility.
ETF Outflows: Withdrawal of capital from Bitcoin exchange-traded funds, often signaling reduced institutional interest.
Maximum Pain Point: The strike price at which options holders (buyers) experience the most financial loss, usually leading to price gravitation near this level.
Put/Call Ratio: A measure comparing bearish (put) and bullish (call) option contracts. A ratio near 1 indicates a balanced market.
FOMC (Federal Open Market Committee): A branch of the Federal Reserve that sets U.S. monetary policy, influencing interest rates and market liquidity.
PCE (Personal Consumption Expenditures): A key inflation measure used by the Fed to determine economic health and policy direction.
For more updates and insights, visit The Bit Journal, where we analyze the most critical crypto market developments.
- https://twitter.com/Thebitjournal_
- https://www.linkedin.com/company/the-bit-journal/
- https://t.me/thebitjournal
Folgen Sie uns auf Twitter und LinkedIn und treten Sie unserem Telegram-Kanal bei, um sofort über aktuelle Nachrichten informiert zu werden!
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
For advertising inquiries, please email . [email protected] or Telegram
