Bitcoin’s Sharp Drop Puts Pressure on Market Makers as Trading Turns Shaky

Crypto Turns Shaky as Bitcoin’s Steep Fall Hits Market Maker Stability

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: November 22, 2025

Summary: Bitcoin dropped roughly 7.6% to about $80,553, exposing how vulnerable the market is.

The recent drop in Bitcoin shook the crypto sector. The price fell over 8%, to around $80,553, and the timing couldn't be worse—the market is already weak, and even little sell-offs are hitting harder than normal.

What really stands out this time is how the drop is stressing out market makers — the folks who keep the system running by matching trades and handling risk in the background. With liquidity drying up, they’re suddenly stuck in a messy loop of hedging and re-hedging.

A big reason behind the fall seems to be straight-up selling in the spot market. Large holders and ETFs have pulled back, removing the steady demand that usually helps keep Bitcoin afloat. And then you have the options market adding its own chaos. Dealers who had earlier sold put options around the $85,000 level are now scrambling to hedge as Bitcoin sinks below those strike prices, which pushes prices down even more.

Because the market is so thin right now, even normal-sized trades can set off outsized moves. One analyst compared the situation to pouring fuel on a small fire — it escalates fast, even if the trigger wasn’t huge to begin with.

All of this has created a cycle that’s tough to break: prices fall, dealers hedge, the hedging causes more selling, and the spiral continues.

For anyone tracking crypto, the message is simple: this dip isn’t just a routine correction. It highlights how fragile the setup is at the moment. Until liquidity improves and buyers step back in with confidence, the market is likely to stay on edge.