Bitcoin slides to $81,000… Options market hits peak 'fear' as spot ETF outflows accelerate

Bitcoin (BTC) plunged about 10% over two days, retesting the $81,000 level. Analysts say a sharp risk-off mood has reached its highest level in a year, as massive outflows from spot exchange-traded funds (ETFs) coincided with a steep drop in gold prices.

On the 30th (local time), Bitcoin on Binance’s Tether (USDT) market corrected about 10% over the past two days, touching $81,000 for the first time in about two months. While it is currently trading around $84,000, the key psychological support level of $80,000 is under threat, heightening investor anxiety.

The latest decline was driven by capital leaving U.S.-listed spot Bitcoin ETFs. Since Jan. 16, net outflows have totaled about $2.7 billion, equivalent to 2.3% of total assets under management (AUM). Markets are raising concerns that institutional demand has entered a plateau, while gold—up 18% over the past three months—has been eroding Bitcoin’s appeal as a store of value.

Derivatives indicators are pointing to “extreme fear.” On the day, Bitcoin options’ delta skew surged to 17%, the highest level in a year. In a typically neutral market, put-option (sell) premiums are usually within 6% of call-option (buy) premiums; the move suggests a wave of hedging flows positioning for further downside.

Futures markets also saw heavy liquidations: the sharp selloff in Bitcoin triggered the liquidation of roughly $860 million in leveraged long (buy) positions. Still, there were positive signs. Bitcoin futures open interest (OI) fell to $46 billion from $58 billion three months ago. This is seen as leverage froth being wrung out, leaving the market on a healthier footing.

Experts said, “With crypto investor sentiment weakened after a 13% drop over the past two weeks,” adding that “for Bitcoin to regain upside momentum and reclaim $87,000, the cash preference driven by macroeconomic uncertainty will need to subside.”