As traders prepare to close the year.. the cryptocurrency market today is experiencing a state of heightened anticipation as the expiration date of Bitcoin options contracts #options worth a massive $23 billion approaches. This event represents one of the largest expirations in the market's history and is the main driver of the volatility we are seeing today.
1. Why is the price dropping now?
Despite the grand economic promises.. Bitcoin is facing severe pressures that have pushed the price to test critical support levels around 87,000 dollars. Bloomberg reports today indicate that individual investors have incurred severe losses in recent weeks of 2025 due to:
Liquidations: Liquidating hundreds of millions of Long positions with declining temporary confidence.
Position fortification: Major traders are now betting on defensive strategies in anticipation of what is called the cryptocurrency winter before the start of 2026.
2. The Fed and liquidity:
The statements by Beth Hammack, a member of the U.S. Federal Reserve, have complicated the economic landscape today, hinting that inflation still needs strict monitoring. This has diminished traders' hopes for a rapid interest rate cut, prompting investors to temporarily flee to the dollar as a safe haven.. leaving high-risk assets like crypto facing a correction storm.
3. A window of hope: Digital gold versus traditional gold
On the other hand.. technical data shows that Bitcoin has reached a historical support level against gold. Historically, when Bitcoin reaches this level, it begins a strong rebound journey.
Analysts are divided: Are we breaking down towards 80 thousand.. or is this the bottom that will lead us to a new peak in 2026?
Question: Do you think today's drop is a final opportunity to strengthen before 2026.. or would you prefer to wait outside the market until the storm settles? Share your strategy!
