BTC Drops Toward Mid-$80K Range Amid Deteriorating Market Conditions Into Year-End

Bitcoin’s decline continues to accelerate, pressured by renewed selling from old wallets, shifting macro sentiment, and increasingly bearish positioning across the derivatives landscape, according to multiple trading desks monitoring flows.

BTC has dropped more than 7% in the last day and over 20% in a month—falling much faster than equities, which remain comparatively steady thanks to Nvidia’s strong earnings that helped blunt broader concerns about an AI-driven market correction.

In an update circulated on Telegram, market maker FlowDesk reported that long-dormant bitcoin wallets are sending tens of thousands of coins to centralized exchanges, creating a steady wave of supply that has overwhelmed bids. Spot markets remain firmly seller-dominated as a result. FlowDesk also noted that fund managers are rotating into defensive strategies heading into year-end, prioritizing the preservation of profits rather than seeking additional upside—leaving liquidity thinner at key support zones.

Derivatives flows are reflecting the same weakness. FlowDesk highlighted persistent demand for downside protection in both BTC and ETH options, with traders shifting their put strikes lower and volatility surfaces remaining heavily skewed toward puts.

Options data from Deribit reinforces that bearish reset. As previously detailed by CoinDesk, the once-crowded $140,000 call has now been surpassed by the $85,000 put, which has become the single largest open-interest strike in the entire Bitcoin options market—a sign traders are preparing for deeper declines.

As bitcoin continues to slide, the market is increasingly focused on MicroStrategy, with BTC nearing the firm’s average acquisition level of $74,430. JPMorgan recently said MicroStrategy’s stock performance reflects growing concern that it may be removed from the MSCI index in January—an event that could trigger billions in passive outflows and add further strain to an already fragile crypto environment.

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