Bitcoin is teetering above key support at $110,000 after a 12% sell-off from last week’s highs. Whales are reducing positions, demand for put options is exploding, and US-China trade war tensions are not helping. The market is undergoing a strength test.
Whales rotate, not escape
The number one cryptocurrency briefly dropped to $109,800 before rebounding to $111,200. This is almost a 2% loss after the largest deleveraging event in cryptocurrency history. An estimated $19 billion worth of positions were liquidated over the weekend – Bitwise’s Matt Hougan called it a structural “reset,” not a crash. An important difference.
Timothy Misir from BRN draws attention to an important signal: put options exceeded USD 1.15 billion, accounting for 28% of flows. Interest in calls is concentrated around USD 115,000-130,000. “This is selective distribution, not panic,” comments Misir.
Large wallets (10-10,000 BTC) sold approximately 17,500 coins, but on an annual basis they are still net buyers – they purchased a total of over 318,000 BTC. Rotation, not exodus. Options data shows the put-call ratio above 0.5, and the implied volatility has jumped over 60% – levels known from the October correction. Ethereum fell below $4,000, Solana and XRP lost more than 3%. The total capitalization of the cryptocurrency market is USD 3.8 trillion, and the Fear & Greed index has reached 28 – caution is growing.
The macro spoils the mood, but the foundation holds
Tariff threats between Washington and Beijing and the ongoing US government shutdown are reducing risk appetite. Still, 21Shares’ Matt Mena sees strength:
Bitcoin’s resilience amid aggressive deleveraging shows how structural demand – anchored by inflows into ETFs and softer policies – continues to create support.
Last month, over USD 6 billion flowed into American ETFs. If leverage has been washed out and policy easing is imminent, the year-end arrangement looks constructive. Potential? $150,000 while maintaining institutional demand.
A decisive break of $110,000 could open the way to $104,000-108,000. Recovering $115,000 would restore bullish momentum. As Misir says: “It’s a two-sided market driven by headlines.” The game continues. Whales are watching the market.
