Chiara Bianchi
Bitcoin is holding slightly above the $110,000 support level following a 12% slide from last week’s all-time highs, as whale selling, a surge in put demand, and renewed U.S.–China tariff tensions weigh on sentiment, according to analysts.
The world’s largest cryptocurrency briefly touched $109,800 before rebounding to around $111,200, marking a 2% drop on Thursday. The decline follows what analysts have called the largest deleveraging event in crypto history, according to data from PRIME.
Over $19 billion in crypto positions were liquidated over the weekend due to cascading margin calls and exchange dislocations — a structural “reset” rather than a collapse, said Matt Hougan, CIO at Bitwise.
“Bitcoin is testing a crucial floor at $110K as whales trim exposure and put demand spikes,” said Timothy Misir, head of research at BRN. He noted that put positions exceeded $1.15 billion, representing 28% of trading volume, while call interest remains concentrated between $115K and $130K — a sign of “selective distribution, not panic.”
According to BRN data, large holders owning between 10 and 10,000 BTC sold around 17,500 coins during the downturn, but remain net buyers for 2025, having added more than 318,000 BTC year-to-date.
Options data from PRIME’s dashboard shows the put-call open interest ratio above 0.5, while short-term skew has turned sharply negative as traders hedge against additional downside. Implied volatility has also risen above 60%, nearing levels last seen during the October correction.
Altcoins Decline as Market Sentiment Weakens
The weakness extended beyond Bitcoin. Ethereum slipped below $4,000, while Solana and XRP each fell by over 3%. The total crypto market capitalization declined to $3.8 trillion, and PRIME’s Fear & Greed Index dropped to 28, reflecting rising caution among investors.
Data from CoinGlass revealed that over $500 million in leveraged positions were liquidated in the past 24 hours — mirroring a similar wipeout seen during early European trading on Tuesday.
Macro Headwinds Add Pressure
Analysts say macro uncertainty is amplifying the crypto downturn. Tariff threats between Washington and Beijing, combined with the ongoing U.S. government shutdown, have dampened risk appetite across global markets.
Still, some strategists see underlying strength. Matt Mena, a crypto research analyst at 21Shares, wrote that “Bitcoin’s resilience amid aggressive deleveraging and macro headwinds underscores sustained institutional demand driven by ETF inflows and expectations of monetary easing.”
He highlighted over $6 billion in Bitcoin ETF inflows over the past month and suggested that with leverage flushed out and policy easing ahead, the year-end outlook remains constructive, potentially paving the way for Bitcoin to reach $150,000 if institutional demand persists.
Technical Outlook: A Fragile Floor, but Upside Potential
Despite the rebound, analysts caution that Bitcoin’s technical setup remains delicate. A decisive break below $110,000 could trigger a move toward $104,000–$108,000, while a recovery above $115,000 could restore bullish momentum.
“The surge in put buying signals fear,” said Misir, “but call concentration at higher strikes shows institutions are hedging, not exiting. This remains a headline-driven, two-way market.”
