Bitcoin extended its decline on Friday morning Hong Kong time, falling below $85,500, CoinDesk data shows, as the market absorbed a fresh wave of selling pressure and another shift in global rate expectations.
The drop leaves BTC down more than 7% in the last 24 hours and more than 20% in the last month, outpacing losses across all stocks, which remain comparatively strong thanks to strong earnings from Nvidia, which combated fears of an AI bubble.
In a note posted on Telegram, market maker FlowDesk said the market continues to struggle amid a large coin supply hitting centralized exchanges from long-dormant bitcoin wallets, with tens of thousands of coins moving after years of inactivity.
These flows have overwhelmed supply, keeping spot activity decidedly biased toward sellers. The firm added that managers are now positioning themselves defensively heading into the end of the year, more focused on protecting profits than increasing exposure, which has reduced liquidity at key support levels.
FlowDesk also noted that derivatives flows reflect weakness in the spot market, with large buyers of BTC and ETH on the downside and traders lowering their put positions to maintain protection, as volatility curves remain heavily tilted towards puts.
Deribit options data shows a similar reversal in sentiment, CoinDesk previously reported, with the once-dominant $140,000 call now eclipsed by the $85,000 put, which has become the biggest open interest strike in the entire BTC options market as traders reposition for bigger downsides.
As the market continues to decline, all eyes are now on MSTR as the BTC price approaches the MicroStrategy average breakeven point of $74,430.
In a recent note, JPMorgan said the stock’s underperformance reflects growing anxiety over a possible delisting from the MSCI index in January, a decision that could trigger billions in passive outflows and inject another layer of stress into an already fragile crypto market.
