Bitcoin options show high fear levels as traders anticipate a deeper selloff, while markets stabilize with liquidation of high-risk leveraged positions. BTC corrected 10% in two days, testing $81,000, as outflows from spot Bitcoin ETFs grew amid a 13% drop in gold prices. Institutional demand concerns arise as $2.7 billion exits US-listed spot Bitcoin ETFs.

Anxiety among Bitcoin investors increases due to quantum computing threats to blockchain security. Coinbase forms advisory board to assess risks. Jefferies removes Bitcoin from flagship portfolio over long-term concerns, but Adam Back predicts minimal quantum risk for next decade. Options market sees surge in bearish sentiment with BTC delta skew at 17%.

$860 million in leveraged long BTC futures positions liquidated, leading to surprise crash. Falling BTC futures open interest to $46 billion indicates healthier market post-purge of excessive leverage. Decline in leveraged futures interest not always bearish; analysts monitor stablecoin demand in China for risk appetite signals. Bitcoin derivatives reflect cautious sentiment post 13% price drop.

Bitcoin may struggle to reclaim $87,000 amid cautious market following recent price drop. Investors need to understand no asset is immune to corrections during macroeconomic and socio-political uncertainties driving demand for cash and short-term US Treasuries. This article does not provide investment advice, readers should conduct their own research.

Read more at Cointelegraph: Bitcoin Options Flash Extreme Fear: Is Sub-$80K BTC Next?