Bitcoin is Declining: Investors are Deepening Their Losses

Sharp Decline in Bitcoin Price

Bitcoin has dropped below $91,500 on Monday, wiping out all the gains it achieved throughout the year. This situation is deepening the panic selling and uncertainty atmosphere in the markets.

Investors Expecting Sharp Declines

As the price decline continues, options market investors are turning to hedge against potential further significant losses. According to data from Deribit, owned by Coinbase, protective option demand is rapidly increasing, particularly for the levels of $90,000, $85,000, and $80,000. The trading volume for these contracts, set to expire at the end of the month, has reached record levels.

Heavy Investments in Short Positions

In recent weeks, investors who had focused on Bitcoin’s rise have now invested over $740 million in short positions that will expire at the end of November. Interest in long positions has significantly decreased.

Decline in Market Demand

Chris Newhouse, Research Director at Ergonia, stated, "Buyers who have accumulated positions over the last six months are now facing significant losses. The lack of real demand in the spot market is becoming increasingly visible."

Effects on Companies

Those most affected by the decline include companies that aimed to become “digital asset treasuries” by adding large amounts of crypto to their balance sheets at the beginning of the year.