The crypto community is in "extreme fear" as the market braces for Bitcoin to drop towards "$80,000".

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Bitcoin is undergoing a free-fall decline, and traders are preparing for an even larger downturn.

On Monday, Bitcoin fell below $91,500, continuing its recent plunge. Data from the options market shows that traders’ demand for protective positions at downward levels such as $90,000, $85,000, and $80,000 has surged dramatically, and the volume of put contracts expiring at the end of November has already surpassed $740 million.

Chris Newhouse, research director at DeFi-focused Ergonia, said:

As buyers who accumulated positions over the past six months find themselves deeply trapped, the belief-driven demand for long positions is becoming increasingly weak.

The sentiment index compiled by data platform CoinMarketCap shows that cryptocurrency participants have fallen into an "extreme panic" state. The market is crowded with investors who are too deep in losses to keep buying, yet unwilling to cut their losses.

"Cryptocurrency Treasury Companies" Under Pressure

The pain is most evident among the so-called digital asset "treasury companies."

Earlier this year, these companies hoarded large amounts of cryptocurrency, hoping to become concept stocks for crypto accumulation in the equity market.

Despite Michael Saylor’s Strategy recently buying another $835 million in Bitcoin, many of his peers are facing growing pressure and need to sell assets to protect their balance sheets.

Greg Magadini, Director of Derivatives at Amberdata, said this selling creates psychological pressure, noting:

Ethereum is especially vulnerable to this trend, since the largest digital asset treasury companies are currently at a loss.

The world’s second-largest cryptocurrency, Ether, dropped to $2,975, down 24% since early October, showing particular weakness.

Macro Factors Pressure Risk Assets

Broader economic forces are also dragging down market sentiment. Fed policy expectations and debate over the AI bubble have become the two main obstacles facing cryptocurrencies and risk assets before year-end.

Adam McCarthy, analyst at research firm Kaiko, said:

I believe the Fed and the discussion around the AI bubble are the two main obstacles facing cryptocurrencies and risk assets before the end of the year.

The cryptocurrency market has been in turmoil since the sharp liquidation wave in early October, when around $19 billion of crypto assets were wiped out. According to Coinglass data, open interest in crypto futures contracts has declined, especially for smaller tokens like Solana, where positions have dropped by more than half.

Thomas Perfumo, global economist at cryptocurrency exchange Kraken, said:

This risk-off tone has spilled over into the crypto market, and sentiment remains fragile. This reflects broader macro anxiety, not a structural flaw.

Risk Warning and DisclaimerMarkets are risky; investments should be made with caution. This article does not constitute personal investment advice and does not consider the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investing based on this article is at your own risk. ```