Bitcoin Prices Drop to Four-Month Low Below $84,000 as Investors Hedge

On Wednesday, Bitcoin (BTC) dropped to a four-month low of $81,000, following the decline of the anticipated "Trump bump." Investors are now hedging against further losses, with increased interest in put options at a strike price of $70,000.

Key Points

Bitcoin has decreased by approximately 20% since President Trump's inauguration.
The strike price of $70,000 has the second-highest open interest among options expiring on February 28, totaling $4.9 billion.
Market analysts cite Trump’s geopolitical stance and high inflation concerns as contributing factors to the downturn.
About $2 billion in bullish bets have been liquidated over the past three days.
Demand for Bitcoin ETFs has declined, with outflows of $2.1 billion in six days and over $1 billion withdrawn from spot Bitcoin ETFs on Tuesday.
Market sentiment is bearish; many investors are cautious and waiting for new catalysts to drive prices up.

Currently, BTC is trying to find support at $84,578 but has fallen an additional 4.5% in the last 24 hours.