As Bitcoin (BTC) continues to struggle with its declines, expectations for further declines are increasing.
At this point, option traders are strengthening their defensive positions, such as increasing their purchases of put options, in anticipation of further declines.
According to data, Bitcoin could fall below $80,000 in early 2026 as investors increase their bearish option bets.
Speaking to Coindesk, Derive co-founder Nick Foster said that Bitcoin investors are preparing for a potential price drop below $80,000 in the new year.
At this point, Forster noted that betting is concentrated on put options with strike prices of $84,000 and $80,000 expiring on December 26.
“This shows that investors are particularly piling up put options towards the December 26th expiration date. Open interest is concentrated around the $84,000 and $80,000 expiration levels around this time.
“This positioning suggests there is a meaningful possibility that BTC will start below $80,000 in 2026.”
Forster, who noted that the downtrend may not be over yet and that market participants are pricing in a volatile December, added that the bottom has not yet arrived: “I don’t believe the bottom has arrived yet. Short-term volatility is now outpacing long-term BTC volatility, signaling that the market could see significant volatility as we enter the new year.”
*This is not investment advice.