The world’s largest cryptocurrency was trading at $88,088 at press time, down 0.7% over the past 24 hours, as the total crypto market capitalisation slipped 0.8% to $3.07 trillion. Ethereum fell 1% to $2,987, while Chainlink eased 0.6% to $12.49 and Sui dipped 0.4% to $1.45. Losses were sharper in smaller tokens, with Zcash, Monero and Ethena tumbling more than 5%.
The cautious tone showed up clearly in sentiment gauges. The Crypto Fear & Greed Index slipped one point to 24, keeping the market firmly in the “extreme fear” zone, a reminder that confidence remains fragile even after Bitcoin’s sharp run-up this year.
Macro nerves meet short-term caution
Market participants say the latest move reflects a mix of macro anxiety and short-term positioning rather than a shift in Bitcoin’s longer-term narrative. Nischal Shetty, founder of WazirX, said recent global developments continue to underline crypto’s split personality—as both a risk asset and an alternative monetary system.
“Over the past 24 hours, global macroeconomic signals have reinforced crypto’s dual identity as both a risk-sensitive asset and an alternative monetary system,” Shetty said, pointing to rising currency volatility and renewed signals of potential central bank intervention. Each such episode, he said, highlights “a structural weakness of fiat systems: their dependence on constant policy management,” reinforcing the long-term case for Bitcoin as “a neutral, non-sovereign monetary network.”
At the same time, Shetty noted that renewed safe-haven demand, visible in rising gold prices, signals deeper investor unease around inflation, sovereign debt and geopolitical uncertainty. While gold remains the traditional hedge, he said crypto is increasingly part of that rotation, particularly among digitally native investors who view Bitcoin as a borderless alternative. This dynamic, Shetty added, continues to shape sentiment around Bitcoin’s price in India, where long-term positioning is driven more by macro conviction than short-term price moves.
In the near term, however, price action remains tightly linked to liquidity conditions. Expectations of future rate cuts and easier financial conditions have supported equities, with crypto behaving as a high-beta asset during liquidity-driven rallies. As a result, short-term moves in Bitcoin are being driven less by ideology and more by flows.
“Bitcoin, currently trading at $88,109, faces near-term volatility but retains a medium-term upside bias,” Shetty said, adding that currency instability, rising safe-haven demand and weakening trust in fiat systems continue to support Bitcoin’s “digital gold” narrative.
Derivatives positioning is also playing a key role. The CoinSwitch Markets Desk said Bitcoin pulled back toward $88,000 as traders cut risk ahead of a large year-end options expiry, triggering profit-taking in thin liquidity conditions. That, it said, pushed prices below resistance near $90,000.
In the short term, CoinSwitch expects Bitcoin to remain range-bound, with $88,000 acting as an important support zone and $90,000 as resistance. As long as support holds, it said, the broader structure remains constructive, though volatility is likely to stay elevated.
That caution is tied to the scale of what lies ahead. Sathvik Vishwanath, co-founder and chief executive of Unocoin, said Bitcoin and the broader crypto market drifted lower during U.S. Monday trading ahead of a record $28.5 billion Bitcoin and Ether options expiry on Deribit this Friday, more than half of the exchange’s open interest.
Bitcoin’s “max pain” level sits near $96,000, Vishwanath said, though heavy put interest around $85,000 could continue to pressure prices. Even so, Vishwanath pointed to relative resilience in select crypto-linked stocks such as Hut 8, Coinbase and Robinhood, reflecting pockets of confidence despite near-term caution.
Beneath the surface, some indicators suggest longer-term players may be accumulating. Akshat Siddhant, lead quant analyst at Mudrex, said Bitcoin briefly tested the $90,000 resistance before consolidating near $88,500, with momentum still constructive.
“On-chain data shows strong accumulation, as more than 41,000 BTC left exchanges over the past two days, easing sell-side pressure,” Siddhant said. Ethereum, he added, is showing a similar trend, with exchange reserves dropping to a multi-year low of 16.2 million ETH. This tightening supply, he said, supports the case for a year-end rally, with a decisive break above $90,000 potentially opening the path toward $92,000.
For now, Bitcoin remains caught between fragile sentiment, heavy derivatives positioning and a longer-term macro narrative that continues to attract conviction buyers, setting the stage for heightened volatility in the days ahead.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
