Bitcoin price slipped below $91,500, intensifying selling pressure as investors weigh the risk of further downside.
Bitcoin has given back its gains for the year and remains weak amid a broader risk-off environment.
In the options market, the retreat of cash-rich buyers has encouraged bets on further declines.
Traders are positioning for continued weakness as market sentiment remains fragile.
Long-term holders are feeling the heat.
Ergonía’s research director Chris Newhouse said that buyers who built sizable positions over the past six months are taking losses, eroding conviction in the spot market.
MicroStrategy, led by Michael Saylor, has added about $835 million worth of Bitcoin, while other firms face pressure to divest to protect their balance sheets.
Macro factors are weighing on sentiment as investors await Nvidia’s earnings and the potential for a December Fed rate cut.
The S&P 500 fell more than 1%, dampening appetite for crypto and other risk assets.
Ether has been notably weak, with the second-largest cryptocurrency retreating sharply.
The broader market has remained volatile after October’s large-position liquidations, which erased roughly $19 billion in crypto market value.
An economist at Kraken said the risk-off mood is spilling into the crypto market and that sentiment remains fragile.
The latest downturn reflects broader macroeconomic anxiety rather than structural flaws.
Analysts warned that discussions around the Fed and an AI bubble could become a headwind into year-end.
They said AI risks could further erode sentiment for crypto, depending on FOMC remarks.
Investors remain cautious as macro indicators and policy signals unfold.
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