Bitcoin’s recent sell-off has raised fresh doubts about a near-term rebound, with derivatives markets signaling limited confidence in a sharp recovery by March.
Bitcoin Price Falls Below $63,000 Amid Macro Pressure
Bitcoin dropped below $63,000, marking its lowest level since November 2024 and extending losses to roughly 30% from its late-January high near $90,500. The decline followed weak U.S. employment data, a broader equity market pullback, and growing concerns that heavy investment in the artificial intelligence sector may be forming a bubble. These factors have pushed investors toward a more risk-averse stance.
BTC Options Market Signals Low Upside Probability
Options pricing suggests traders see minimal chances of a rapid rally. March call options with a $90,000 strike price are priced to imply around a 6% probability of Bitcoin reaching that level by late March. In contrast, downside protection remains in higher demand, with $50,000 put options reflecting roughly 20% odds of further declines. This imbalance highlights a market more focused on risk management than upside speculation.
Additional pressure comes from fears that companies holding Bitcoin through leveraged strategies may face forced sales if prices remain depressed. Combined with broader economic uncertainty, these dynamics suggest that while short-term volatility may continue, a swift rebound toward $90,000 appears unlikely in the current environment.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.