Bitcoin derivatives traders are actively hedging against a potential decline below $85,000, as evidenced by significant put options at this level. The market's 30-day implied volatility has surged to 45%, reflecting heightened uncertainty. Analysts highlight a bearish outlook for early 2026, with Ethereum also at risk of falling to $2,500. On-chain data indicates that short-term holders are experiencing losses, while long-term investors are reducing their Bitcoin positions. Geopolitical tensions and Federal Reserve policies are expected to influence near-term market volatility.