Bitcoin News Today: Bitcoin Drops Sharply: Is This a Temporary Correction or the Start of a Crash as Options and ETFs Drive a $75K Retest?

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Bitget-RWA2025/11/24 21:46

By:Bitget-RWA

- Bitcoin fell below $84,000 as put options dominance and ETF outflows amplified volatility amid macroeconomic uncertainty. - $903M Bitcoin ETF outflows and $262M Ethereum ETF outflows reflect waning risk appetite ahead of Fed's December meeting. - Options market pressures at $75,000 strike price and Fed policy ambiguity heighten risks of prolonged price declines. - Altcoins like Ethereum and XRP declined 4-5% as risk-off sentiment spreads across crypto markets. - Analysts warn $75,000 support level could

Analyst Says Bitcoin’s Abrupt Volatility Spike Suggests Options Market Is Steering Price Action

On Friday, Bitcoin (BTC) tumbled below $84,000, experiencing a steep drop as global economic uncertainty and risk aversion intensified. The cryptocurrency touched intraday lows of $82,000, prompting increased attention on how options trading may be fueling short-term price swings. Experts are highlighting the rising influence of put options—bets on further declines—as a possible trigger for the sell-off, with

Deribit data indicating robust hedging strategies

focused on the $75,000 strike level.

The downturn has been worsened by unprecedented withdrawals from U.S.-traded

Bitcoin

ETFs.

SoSoValue reports

that spot Bitcoin ETFs saw $903 million pulled out on Thursday, the largest single-day outflow since November 13. This pattern signals a shrinking appetite for risk, especially among institutional players, as markets await

the Federal Reserve’s December meeting

Ethereum

(ETH) ETFs also faced outflows totaling $262 million, while

XRP ETFs stood out with $118 million in new investments

. Since their inception, Bitcoin ETFs have attracted a net $57.4 billion, but

the latest withdrawals point to increasing investor caution

These pressures have been magnified by activity in the options market.

Bitcoin News Today: Bitcoin Drops Sharply: Is This a Temporary Correction or the Start of a Crash as Options and ETFs Drive a $75K Retest? image 0

Put options have taken center stage in trading

, with the $75,000 strike emerging as a key area for those seeking protection against further declines. This uptick in bearish bets coincides with a spike in volatility indexes to their highest levels in a month.

Analysts observe that upcoming options expirations and significant open interest

may further intensify price fluctuations, particularly if the Fed hints at extended tightening or postpones rate reductions.

Broader economic challenges remain a major worry.

Ongoing disagreements within the Fed about December rate cuts

—evident in differing remarks from New York Fed President John Williams and Boston Fed President Susan Collins—have left investors uncertain. At the same time, weak retail participation and limited liquidity in crypto derivatives have made any recovery fragile.

For example, XRP’s futures open interest dropped to $3.57 billion

, a $220 million decrease in just one day.

The sell-off has also affected other cryptocurrencies. Ethereum slipped under $2,700,

XRP

declined by 4.5%, and Binance Coin (BNB) fell 5.8%.

These losses highlight a broader shift toward risk aversion

, as investors seek safer assets amid geopolitical tensions and uncertainty driven by AI in the markets.

The direction of Bitcoin now depends on whether these outflows are a brief correction or signal a more fundamental change.

Deutsche Bank analysts cautioned

that the recent 35% slide from October highs points to a fragile market, with regulatory momentum fading and liquidity thinning. Should this trend continue,

Bitcoin could revisit the $75,000 mark

, a level not seen since the crypto downturn of 2022.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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