Bitcoin extended its decline below the $100,000 threshold after a wave of risk aversion swept through markets, prompting investors to withdraw nearly $900 million from funds investing in the cryptocurrency.

According to CoinGecko, the crypto market remains under pressure. Data from CoinGlass shows that liquidations continue, with over $1 billion in leveraged crypto bets wiped out in the past 24 hours.

Max Gokhman, Deputy Chief Investment Officer at Franklin Templeton Investment Solutions, noted, "The current sell-off is entirely correlated with other risk assets, but given crypto’s higher volatility, the magnitude is also greater." He added, "Until deeper institutional participation expands beyond Bitcoin and Ethereum, crypto’s beta to macro risks will remain elevated."

In the options market, traders are increasingly positioning for volatility. According to Nick Ruck, an analyst at LVRG Research, demand for neutral strategies like straddles and strangles is rising.