Bitcoin Drops Below $88,000 Ahead of Record $28.5B Deribit Options Expiry:

Bitcoin slid under $88,000 in U.S. trading as crypto markets weakened ahead of a record $28.5 billion options expiry on Deribit this Friday. After trading above $90,000 briefly in the session, BTC reversed lower and Ether fell back below the $3,000 level.

That pullback happens as traders position cautiously ahead of the largest options expiration in Deribit's history, which sees more than half of the exchange's open interest facing expiry. Market participants will be keenly focused on these key strike levels, with a heavy put interest clustered near $85,000, thereby making selling pressure more significant for the downside.

Despite the broader crypto weakness, some crypto-related stocks have continued to outperform: Hut 8 remained a standout as it extended its gains following its long-term AI data center lease deal, while Coinbase and Robinhood held more modest advances well off session highs. Strategy swung from earlier gains into slight losses as crypto prices softened.

Option market data suggest traders are rolling defensive positions forward, rather than exiting risk outright. With short-dated protective puts now more expensive, caution is being sounded into year-end, but positioning further out also hints at uncertainty regarding early 2026 price action.

Sentiment is still defensive across cryptocurrency markets, with liquidity thinning and a big derivatives event looming this week.

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