Bitcoin continued its sharp decline on Friday, falling as much as 7.6 percent to $80,553 and deepening a monthly drop of nearly 25 percent. November is now turning into Bitcoin’s worst month since the major crypto crashes of 2022, when the collapse of Terra and FTX shook the entire industry.
Why Bitcoin Is Falling
The current selloff is being led mainly by spot selling. Large Bitcoin exchange-traded funds have reported heavy redemptions, long-inactive wallets are suddenly selling, and momentum traders who were driving prices earlier in the year are now pulling back.
Market analysts say options trading is adding to the volatility. As Bitcoin breaks key price levels, dealers who sold options must adjust their positions to stay protected. This process, known as gamma exposure, often forces them to sell more Bitcoin as prices fall, increasing downward pressure.
The Dangerous Price Levels
One of the most important levels, $85,000, was broken on Friday. Many traders had bought put options around this price, which forced market makers to sell more Bitcoin to hedge their risk. This selling amplified the fall.
The next critical level is $80,000. Below this point, options models show that dealers’ risk positions shift, making them buyers rather than sellers. This could slow the decline, but analysts warn any recovery may be short-lived because overall demand remains weak.