Bitcoin Faces Longest Losing Streak Amid Market Volatility
- A key spot market metric has spiked to its second-highest level in the year, indicating potential bottoming.
- Options traders are hedging for more downside, loading up on puts in the $85,000 to $80,000 range.
- Bitcoin is trading at $87,400, up roughly 6% from its November low of $82,100.
- The digital asset has recorded a fourth consecutive weekly loss, marking its longest downtrend since June last year.
- The Federal Reserve’s policy shift has increased the odds of a December rate cut from last week’s estimate of nearly half to almost three-quarters today.
Despite Bitcoin’s recent price recovery and increased dip-buying activity, options traders remain cautious about further declines. The ongoing market pressures and fears of sticky inflation contribute to this sentiment.
Bitcoin’s current trajectory suggests a challenging end to the year with potential recovery contingent on Federal Reserve actions and broader market conditions. Source
