BTC Falls Toward Mid-$80Ks as Market Structure Weakens Into Year-End

Bitcoin's price has fallen below $85,500, reflecting a 7% drop in 24 hours and over 20% decline in the last month. This drop is attributed to significant selling pressure as a surge of coins from dormant wallets is hitting centralized exchanges. Market maker FlowDesk reports that old wallets have transferred tens of thousands of bitcoins, overwhelming buying interest. Consequently, the market is skewed toward sellers, while liquidity remains thin. Derivatives data shows traders are increasingly positioning for further declines, with put options now dominating the market over calls. Options data from Deribit highlights a shift in sentiment, with the $85,000 put option becoming more popular than previously favored higher strike prices. As Bitcoin approaches MicroStrategy’s average purchase price, concern over its possible removal from the MSCI index further compounds market volatility, potentially triggering significant passive fund outflows.

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