Bitcoin’s plunge to $65,000 has traders paying to protect against a fall to $50,000
Bitcoin’s drop below $70,000 has shifted traders from buying dips to buying downside protection. BTC fell as low as $65,404, triggering $1.8 billion in liquidations and wiping out leveraged longs. Options markets now show heavy positioning around the $60,000 and $50,000 strikes, reflecting growing fear of a deeper drawdown. Support has weakened on several fronts: Strategy sold 32 BTC to fund payments, breaking its image as an always-buying corporate holder; spot Bitcoin ETFs have seen more than $4 billion in outflows over four weeks; and capital is rotating toward AI-related opportunities and upcoming tech IPOs. Earlier relief from inflation data and geopolitical hopes faded quickly, and the failed rebound lacked spot buying. With major support broken and the ETF bid gone, traders are increasingly hedging for a lower next leg.
