On Wednesday, Bitcoin (BTC) prices dropped to a four -month hollow, reaching as low as $ 81,000, because the “Trump bump” planned on the markets was upset. This prompted investors and merchants to cover themselves against new decreases, bitcoin options indicating a significant interest in put options With an exercise price of $ 70,000.
Bitcoin drops 20% since the inauguration of Trump
According to For Deribit data, the largest exchange of crypto options, this exercise price represents the second largest interest open among all the contracts that will expire on February 28, with a total of $ 4.9 billion in open interest ready to expire by Friday.
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Since the inauguration of President Donald Trump in January, Bitcoin has experienced a substantial drop of approximately 20% compared to his record heights.
Market analysts attribute this slowdown to a combination of factors, including the “aggressive geopolitical” position and the current concerns concerning inflation.
Chris Newhouse, director of research in Cumberland Labs, noted: “Pricing policies are more prospecting, and the expectations of short -term inflation barely high add to overall prudence.”
Newhouse also stressed that the appeal Ethereum (ETH) Hack not only had downward pressure on the price of bitcoin, but also had a negative impact on the overall feeling of the market.
Investors are retreating in the middle of the drop in ETF demand
The market has also experienced a large liquidation of bullish bets, with approximately $ 2 billion in the past three days, according to Coinglass data.
Bitcoin perpetual future—A popular method for offshore investors to take advantage of their positions – it was a sharp drop in long positions during this period.
Adding to the lower feeling, the demand for negotiated Bitcoin (ETF) funds decreased, the group knowing about $ 2.1 billion in outings in the last six days.
This reflects a broader trend of investors pulling back, with more than a billion dollars withdrawn from Bitcoin Spot ETF only on Tuesday, marking the biggest outing since these funds made their debut in January of the previous year. The Fidelity Bitcoin Fund (FBTC) and Blackrock Ishares Bitcoin Trust Etf (Ibit) were among the hardest.
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Bohan Jiang, head of the over -the -counter options, a merchant in Abra, said: “This is a mixture of selling points and bases. In my opinion, almost all this comes from the outlets of ETF spots of directional traders. »»
Ethereum also felt the impact of Storiesamplifying its volatility, while Solana (soil) has rendered the gains made in recent months in the midst of a drop in interest in mecoins.
The market research of a new catalyst to reverse its lower feeling has led many investors to stay on the fringes, turning cryptocurrencies in a risk environment.
Ravi Doshi, co-head of the markets of the Crypto Prime Falconx broker, said: “The cryptography market is always looking for a new catalyst to reverse the bearish feeling.”
Currently, BTC is trying to find support at $ 84,578, but fell by an additional 4.5% within 24 hours a day.
Dall-e star image, tradingView.com graphic
