Bitcoin has experienced heavy selling pressure, dropping to the $85,000 range before showing signs of a modest recovery. Market confidence has been shaken, but the intense capitulation from Bitcoin holders suggests a potential bottom forming. Risk expectations are shifting as traders increasingly seek downside protection, with short-dated options showing the most skew. Realized losses among Bitcoin holders have surged to levels not seen since the FTX collapse, indicating panic selling from recent buyers near the highs. Bitcoin currently trades at $85,979, defending key support levels. A potential market bottom could lead to a rally towards $95,000 in the short term, but further bearish pressure could push the price lower.

Read more at Yahoo Finance: Did Bitcoin Just Bottom Out? What the Data Says About a Rebound