Bitcoin holds below $80,000 as January prediction contracts miss liquidation-driven slide: Asia Morning Briefing

Options markets signaled rising tail risk as liquidations mounted, but January prediction odds adjusted slowly as bitcoin volatility unfolded. What to know : Bitcoin's sharp drop exposed a gap between fast-moving derivatives markets, where traders rushed to buy downside protection, and slower-moving prediction markets focused on month-end outcomes. Options data showed a rapid surge in demand for $75,000 bitcoin puts and more than $500 million in leveraged long positions liquidated over a thin-liquidity weekend, underscoring crypto's vulnerability to sudden leverage-driven drawdowns. Bitcoin traded just under $80,000, ether hovered near $2,300, and gold retreated to about $4,750 an ounce, while Asian equity markets were mixed as investors weighed stronger Chinese factory data against regional stock declines.