Bitcoin price slipped today below $87,000, falling nearly 1%, as multiple pressures hit the market at the same time. After weeks of moving sideways between $85,000 and $90,000, Bitcoin is struggling to find strong support, leaving traders cautious.
China’s Mining Crackdown Triggers Supply Pressure
One of the biggest reasons behind today’s drop is China’s renewed crackdown on Bitcoin mining. Reports show that authorities shut down large mining operations in Xinjiang earlier this month. As a result, an estimated 400,000 miners went offline in a very short period.
This sudden disruption caused Bitcoin’s network hashrate to fall by around 8%, signaling a real operational shock. When miners are forced offline, their income stops instantly.
Many then face relocation and setup costs, which often lead them to sell Bitcoin to cover expenses. This creates real selling pressure, not speculation.
ETF Outflows Signal Institutional Rotation
At the same time, institutional demand has weakened. Spot Bitcoin ETFs have now recorded three straight weeks of outflows. On December 23 alone, ETFs saw $186.6 million leave the market. BlackRock led the withdrawals with $157.3 million, followed by Fidelity and Grayscale.
This trend suggests institutions are rotating funds away from Bitcoin, at least temporarily.
Many analysts believe that money is moving into gold, which recently hit a fresh all-time high above $4,400, strengthening the safe-haven trade.
Massive Options Expiry Adds Volatility Risk
Adding more pressure is the largest Bitcoin options expiry in history. Over $23.6 billion worth of BTC options expired on Deribit, involving nearly 268,000 contracts.
Such large expiries often cause sharp moves, especially during low-liquidity holiday weeks. Traders usually see choppy price action before expiry, followed by a clearer move afterward.
What Comes Next for Bitcoin?
Despite weak sentiment, some technical signs remain hopeful. Bitcoin has printed multiple golden crosses this month, and historically, BTC rarely closes two years in a row in the red.
Still, analysts at CryptoQuant warn that if pressure continues, Bitcoin could retest the $70,000 to $56,000 range in the coming months before a stronger recovery begins.
For now, Bitcoin’s drop looks driven by policy shocks, institutional rotation, and market mechanics, not a collapse in long-term demand.
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