The cryptocurrency market correction, led by Bitcoin (BTC), has entered its third consecutive day. Over the past 24 hours, Bitcoin has shed another 3.5% of its value, reaching an intraday low of $92,785. This marks the largest single-day drop for BTC since Donald Trump’s U.S. election victory. What’s behind this downturn? Experts cite several reasons, including the expiration of monthly Bitcoin options, fears surrounding Trump’s tariffs, profit-taking, and ETF outflows.

Bitcoin Falls Below $93,000: Key Levels in Play

Bitcoin briefly dipped below the critical $93,000 support level before recovering slightly to $94,512, a 4% drop on the day. Despite the rebound, sentiment around Bitcoin reaching $100,000 has weakened. Meanwhile, trading volume surged by 60% to $84.84 billion, reflecting intense market activity.

This decline coincides with reports from Reuters about Donald Trump, the newly elected U.S. President, announcing additional tariffs on imports from China, Mexico, and Canada. The resulting sell-off in U.S. stock futures has extended to Bitcoin and crypto indices, amplifying bearish pressure.

Markets Await FOMC Data: What’s Next for Bitcoin?

The drop in Bitcoin has been mirrored by significant declines in other major tokens like Solana (SOL), BNB, Cardano (ADA), and Dogecoin (DOGE), all of which have fallen up to 7% in the past 24 hours. Analysts view the roughly 10% pullback from Bitcoin’s recent highs as a natural correction.

Tony Sycamore, a market analyst at IG Australia Pty, emphasized that the pullback is not necessarily a sign of a downward trend. Instead, he described it as a much-needed cooldown from overbought conditions, reminding traders that “markets, including crypto, do not move in straight lines forever.”

Key Drivers of Bitcoin’s Decline

  1. Bitcoin Options Expiration
    On Friday, Bitcoin options worth a total of $9.4 billion will expire. Analysts warn that this could fuel heightened price volatility. According to Deribit data, the put/call ratio stands at 0.83, with the “maximum pain” point at $78,000. Open interest, predominantly centered around $82,000 call options and $70,000 put options, has risen by 2% to $42.6 billion.

  2. Profit-Taking
    With Bitcoin recently rejecting the $100,000 level, some investors are taking profits off the table, adding selling pressure to the market.

  3. ETF Outflows
    The ETF market has seen notable outflows, signaling reduced institutional interest in Bitcoin at current levels.

  4. Macroeconomic Concerns
    Core PCE data, expected on Wednesday, will likely impact risk assets, including Bitcoin. This inflation metric could influence the Federal Reserve’s policy stance. An uptick might dampen hopes for a December rate cut, keeping risk sentiment low across markets.

Looking Ahead: Risks and Opportunities

Popular crypto analyst Credible Crypto warned traders to be cautious about adding long positions, as Bitcoin’s breach of $94,000 could open doors to the $80,000 range. However, this decline is unlikely to occur immediately. Meanwhile, Joe Consorti highlighted Bitcoin’s close correlation with global M2 money supply trends, warning of a potential 20-25% correction if this relationship holds.

On the other hand, large investors remain undeterred. MicroStrategy recently purchased 55,000 BTC, while Semler Scientific also increased its Bitcoin holdings, signaling long-term confidence in the asset.

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