Global crypto markets fell today, with Bitcoin and altcoins trading lower. Bitcoin slipped below $88,000 after briefly moving above $90,000 earlier in the day. Ethereum also dropped back under $3,000, while most large-cap altcoins traded in the red.
One of the drivers of the decline is the upcoming expiry of more than $28.5 billion worth of Bitcoin and Ethereum options on Deribit later this week. This is the largest options expiry in the exchange’s history and represents over half of its total open interest.
Such large expiries often increase short-term volatility as traders adjust or roll positions. Additionally, the $96,000 level is Bitcoin’s “maximum pain” point, where options sellers benefit most, while heavy put interest around $85,000 could pull prices lower if selling pressure increases.
Adding to the pressure, U.S. spot Bitcoin ETFs recorded net outflows of about $142 million on December 22.
Broader market indicators also point to stress. The Crypto Fear and Greed Index fell to 29, firmly in the “fear” zone. Altcoin dominance momentum, measured by monthly RSI, has dropped to an all-time low, showing weak appetite for riskier tokens.
Despite the pullback, Raoul Pal, founder of Real Vision, said he believes the market is entering a buying zone rather than a new downtrend.
Pal said crypto was hit hard as liquidity was temporarily withdrawn from the system, exposing excessive leverage. However, he said that prices are now stabilizing around prior lows, a pattern that often means a base forming.
Looking ahead, Pal expects a surge in global liquidity once year-end funding pressures ease and policy conditions loosen, arguing that investors do not need to catch the exact bottom to benefit from the next move higher.
“Crypto reacts first when liquidity tightens, and it recovers first when liquidity returns,” he said, adding that the current weakness fits that pattern.
Crypto markets fell due to large Bitcoin and Ethereum options expiry, ETF outflows, and low investor sentiment causing short-term volatility.
Prices dropped as traders adjusted positions around major options expiry, combined with weak market demand and ETF outflows.
Experts see potential buying zones as prices stabilize and liquidity returns, suggesting the dip could form a base for recovery.
Once funding pressures ease and liquidity returns, crypto often rebounds first, making timing the exact bottom less critical.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Bybit, one of the world’s largest crypto exchanges, will start phasing out services for Japanese…
Bitcoin’s price action in Q4 2025 has looked very different from previous years. After starting…
Two crypto wallets lost a total of $2.3 million in USDT in a rapid on-chain…
Blockchain security company CertiK has issued an important warning after detecting a suspicious on-chain incident…
Bybit is preparing to leave Japan. One of the world’s largest crypto exchanges has confirmed…
Bitcoin is back in focus as veteran trader Peter Brandt raises fresh concerns about where…
