Bitcoin News Today: Bitcoin Slides Toward $85K as Year-End Options Pressure Mounts

Bitcoin teeters near $87,500 amid a broader crypto selloff, with key technical levels and macroeconomic forces shaping market sentiment. XRP/USD continues its descent toward critical support, trading between $1.86–$1.90, while Bitcoin struggles to reclaim the $90,000 threshold. The market remains cautious ahead of a record $28.5 billion options expiry on December 26, with traders hedging positions across major strike levels.

Liquidity has thinned significantly in the final days of the year, compounding the pressure on Bitcoin and altcoins. ETF outflows and thin trading volumes have amplified short-term volatility, with open interest in BTC perpetual contracts falling by $3 billion in the past 24 hours. The Fear & Greed Index remains in the "Fear" zone at 29, underscoring the risk-off mood dominating the market.

Bitcoin's inability to hold above $90,000 has reinforced bearish momentum, with the price retreating to the $87,500–$88,500 range. A failed breakout attempt has triggered profit-taking and further shortening of leveraged positions, particularly on Deribit and Bybit. Analysts are now watching the 78.60% Fibonacci retracement level at $85,869 as the next potential support.

Market Dynamics and Short-Term Outlook

Bitcoin's pullback from the $90,000 level has been influenced by both technical resistance and macroeconomic factors. Traders are positioning for the December 26 options expiry, which includes over 300,000 BTC options worth $23.7 billion. Large open interest remains clustered around the $85,000 and $96,000 strike prices, indicating that hedging activity could dictate short-term price behavior. The Relative Strength Index (RSI) for Bitcoin is at 42, suggesting bearish momentum is slowing but not yet exhausted.

The broader crypto market has mirrored Bitcoin's performance, with Ethereum slipping below $3,000 and XRP trading near multi-month lows. Altcoins remain in consolidation mode as liquidity thins ahead of the year-end holiday period. The total crypto market capitalization currently hovers around $3.00 trillion, down from its peak in mid-2025. XRP's slide toward the $1.80 support level could trigger further downside if the token fails to stabilize in the coming days.

What Analysts Are Watching

Analysts are closely monitoring the psychological $90,000 level as a key inflection point for Bitcoin. A sustained recovery above this level could reignite bullish momentum and signal a broader market turnaround. However, a breakdown below $85,000 would likely expose deeper support at $80,000 and force a reevaluation of risk exposure among traders. The bearish regression channel, drawn from Bitcoin's July peak, has been a reliable indicator of price direction during the current correction.

The XRP market structure remains a focal point for on-chain observers. XRP/USD has entered a classic post-blowoff unwind, with price tracing a bearish channel since the July high at $3.67. Each rally has stalled lower than the previous, and current levels near $1.86–$1.87 are tactical rather than structural. The $1.80 support level has been tested multiple times in 2025 and could provide a temporary floor if buying interest reemerges.

Risks to the Outlook

A major risk for Bitcoin and other cryptocurrencies lies in the thinning liquidity across the market. As traders close positions and reduce leverage, volatility is expected to remain elevated in the short term. This is especially true for altcoins, which have seen sharper declines relative to Bitcoin. The risk of a cascading sell-off increases if Bitcoin fails to stabilize above the $85,000 level, as it could trigger more leveraged liquidations and panic selling.

Regulatory uncertainty also poses a risk to the broader crypto market. While Ghana's legalization of virtual asset service providers offers a long-term bullish signal, investors are cautious about potential regulatory shifts in major markets such as the U.S. and EU. The lack of a clear regulatory framework for crypto derivatives and ETFs continues to weigh on sentiment, with investors hesitant to commit capital until more clarity emerges.

What This Means for Investors

Investors are advised to approach the current market environment with caution, particularly with large option expiries and thin liquidity. Holding cash or reducing leveraged exposure may be prudent strategies for risk-averse investors. For those seeking opportunities in a downturn, buying assets at key support levels-such as Bitcoin's $85,000 or XRP's $1.80-could be rewarding if the market turns bullish in early 2026.

The AI-driven investment boom could also reshape the crypto landscape in the coming months. A $569 billion commitment to AI infrastructure by U.S. tech firms is expected to boost blockchain scalability and adoption, potentially creating new use cases for digital assets. While these developments are still in early stages, they offer a long-term catalyst for crypto prices if they gain traction in mainstream technology ecosystems.

Bitcoin's current price action suggests a period of consolidation before a clearer trend emerges. Traders and investors alike are watching for a decisive break above $90,000 or below $85,000 to determine the next phase of the market's trajectory. Until then, volatility and uncertainty are likely to remain the defining features of the crypto landscape.