Bitcoin Traders are increasingly taking a defensive stance, bracing for the possibility of prices falling below $80,000 in the new year.
“The sharp decline in Skew suggests traders are heavily buying put options, especially at the December 26 expiration, with open interest concentrated at the $84,000 and $80,000 strike prices,” Derive co-founder Nick Forster said in a market report.
He added: “This positioning means that starting in 2026, Bitcoin is very likely to fall below $80,000.”
As of this writing, BTC is changing hands at nearly $87,000, down 30% from its all-time high of over $126,000 set on October 8, according to CoinDesk.
Foster said the downtrend may not be over yet, with market participants expecting December to be a volatile market. “I don’t think the bottom has been reached yet. Short-term volatility is now higher than long-term Bitcoin volatility, which suggests the market is expecting big moves heading into the new year,” Foster said.
