Whales Reduce Positions and Bitcoin Put Options Soar
- Whales Reduce Positions and Macroeconomic Pressures Affect Bitcoin
- Demand for put options reaches $1,15 billion
- ETF and Fed policy support recovery outlook
Bitcoin hovered near the $110.000 support after falling 12% from the previous week's highs amid intensified selling by large investors and a significant increase in demand for short-term put options. Economic tensions between the United States and China and the prolonged U.S. government shutdown also contributed to weakening market sentiment, pushing the Fear and Greed Index to 28 points.
On Thursday, the leading cryptocurrency touched $109.800 before recovering slightly to $111.200, following the largest deleveraging event ever recorded in the sector. It's estimated that more than $19 billion in leveraged positions were liquidated over the weekend, in a move that Bitwise CIO Matt Hougan described as a "structural reset," not a collapse.
According to Timothy Misir, head of research at BRN, "Bitcoin is testing a crucial floor at $110, with whales reducing exposure and increasing demand for puts." He explained that put options totaled $1,15 billion, representing 28% of traded volume, while call options were concentrated between $115 and $130. "This is selective distribution, not panic," he stated. Misir added that large holders sold about 17.500 BTC, but remain net buyers year-to-date, adding over 318.000 BTC.
Derivatives data shows a put-call ratio above 0,5, with traders seeking protection against implied volatility above 60%, similar to levels seen in October. Ethereum has retreated below $4.000, while Solana and XRP have both fallen more than 3%, reducing the total market capitalization to around $3,8 trillion.
Even in the face of pessimism, analysts believe that structural demand via ETFs and the Federal Reserve's more dovish stance could stabilize the market. Strategist Matt Mena of 21Shares highlighted that "Bitcoin's resilience amid macroeconomic headwinds and aggressive deleveraging shows how structural demand—anchored by ETF inflows and a more moderate political outlook—continues to provide a floor." He highlighted over $6 billion in institutional inflows via ETFs in the last month alone, noting that if the $110.000 support level holds, the cryptocurrency could target levels close to $150.000 by the end of the year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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