Bitcoin News: How Deep Could BTC Fall?

Traders are increasingly cautious in the bitcoin options market after BTC's recent fall below $100,000, dropping over 18% from its peak of more than $126,000. Macro uncertainties, particularly the Federal Reserve's hawkish stance, have weakened demand for spot ETFs, contributing to this decline. Increased demand for lower strike put options on Deribit, especially the $80,000 and $90,000 puts, indicates that traders are hedging against potential further declines. Notional open interest in BTC options remains high at over $40 billion, with heightened activity focused on November and December strikes around $110,000. A surge in $80,000 put options, which exceed $1 billion, reflects traders preparing for downward trends. The recent sell-off has also been impacted by forced deleveraging and significant net outflows from U.S. spot Bitcoin ETFs, equating to around $1.3 billion across four sessions. As macro pressures persist, concerns about a feedback loop further driving down prices remain significant, posing ongoing risks to Bitcoin's stability.

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