Bitcoin’s steep drop leaves new investors underwater as futures trading spikes

A brutal 26% plunge from its peak has Bitcoin testing critical support. Will traders’ bets on volatility save the day—or deepen the slump?

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2025 November 20 . 10:01 AM

1 min read

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Bitcoin’s steep drop leaves new investors underwater as futures trading spikes

Bitcoin’s price has fallen sharply from its all-time high of $126,000, leaving many recent buyers at a loss. Currently trading around $92,858, the cryptocurrency is attempting a small rebound but remains in a broader downtrend. Meanwhile, futures trading activity has surged, even as spot volumes decline.

Bitcoin reached its peak on 6 October but has since dropped by 26%. The latest dip pushed its price below the short-term holder cost basis and the -1 standard deviation band, meaning newer investors are now underwater. Analysts point to the next critical support level at $88,600—the Active Investors' Realised Price.

Trading activity shows mixed signals. Spot volume has fallen by 2.3% to $83.8 billion, while futures volume jumped nearly 15% to $123.2 billion. Open interest in futures also climbed by 3.9% to $67.4 billion, suggesting traders are positioning for larger price swings. Rising implied volatility and options skew confirm this expectation.

Technical indicators suggest a possible short-term bounce, but the overall trend remains downward. For sentiment to improve, Bitcoin would need to close above $95,000, with a stronger recovery requiring a move past $97,000.

Elsewhere, Zcash has seen a sudden price surge. The privacy-focused coin gained attention as demand for data protection in crypto grew, further boosted by high-profile investments from figures like the Winklevoss twins.

Bitcoin’s recent decline has wiped out gains for many short-term holders, with key support now at $88,600. While futures trading remains active, spot volumes have weakened. The market is watching closely to see if Bitcoin can hold above $95,000 or if further losses lie ahead.