Bitcoin's price fell below $88,000 on Sunday, December 7, 2025, casting a shadow over weekend trading sentiment and dimming hopes for a year-end 'Santa Rally.' The decline contributed to a 1.63% drop for the month of December and a 22.01% slide for the fourth quarter of 2025, highlighting a period of sustained weakness.
Futures markets reflected this caution, with total Bitcoin futures open interest declining 1.41% over the past day to 637,700 BTC, valued at approximately $56.82 billion. This reduction suggests traders are scaling back exposure. The Chicago Mercantile Exchange (CME) leads with 124,440 BTC in open interest, followed closely by Binance with 121,640 BTC, both showing minor daily declines.
Options markets present a more conflicted picture. While call options dominate open interest at 64.16% (333,190 BTC vs. 186,160 BTC for puts), indicating residual bullish sentiment, the conviction appears tempered. Short-dated trading volume is clustering around the $87,000 to $91,000 range, signaling active hedging against current price action. Major options venues show max-pain levels—the price at which most options expire worthless—anchored above spot prices, with Deribit around $90,000 and OKX between $90,000 and $93,000 for near-term expiries.
Market attention is now intensely focused on the $80,000 level as a critical downside support. Options data from platforms like Deribit and Coinbase reveals significant open interest concentrated in the $80,000 to $100,000 strike range, with commentators specifically identifying $80,000-$82,000 as a major support zone. Analysts warn that a sustained break below $80,000 could trigger a broader market downturn, potentially impacting Ethereum and altcoins through correlated drawdowns and posing risks to leveraged positions.
Providing historical context, Real Vision CEO Raoul Pal noted, "The long-term trajectory of Bitcoin is connected to liquidity cycles and we should be prepared for volatility in both directions." December has historically been volatile for Bitcoin, with returns ranging from +46.92% in 2020 to -36.57% in 2018. The current market dynamics suggest this December may lean toward the disappointing end of that spectrum, with traders bracing for continued volatility rather than a festive rally.
HYPE