Bitcoin BTC/USD is in a reset phase, with the largest crypto liquidation event in years and weakening ETF inflows prompting bearish sentiment among investors.
What Happened: Bitcoin hit a new all-time high above $126,000 in early October before reversing sharply due to escalating U.S.–China tariff concerns, causing a historic $19 billion futures deleveraging, one of the largest in crypto history.
Glassnode data shows the reset is characterized by reset leverage, cautious sentiment, and reliance on renewed demand for recovery:
ETF & Market Dynamics:
- SoSoValue data shows U.S. spot Bitcoin ETFs recording $536.4 million in net outflows on Thursday. Ark & 21Shares led with a $275.15 million outflow, followed by Fidelity.
- Spot markets saw high volumes: Binance dominated by selling, while Coinbase showed net buying, suggesting institutional absorption.
- ETF inflows weakened, turning slightly negative (–2.3K BTC this week), signaling demand fragility without panic.
On-Chain Insights:
- BTC retraced below the $117,000–$114,000 supply cluster, where top holders are now at a loss.
- Price currently sits in the 0.85–0.95 quantile range ($108,400–$117,100); failure to hold above $108,000 could indicate deeper structural weakness.
- Long-term holders continue distributing (~0.3 million BTC sold since July 2025), adding sell-side pressure and constraining upside momentum.
Also Read: ‘This Bitcoin Bear Market Will Be Brutal’, Peter Schiff Claims As Gold Hits $4,290
Futures & Options Market:
- Futures open interest has collapsed by over $10 billion, a deleveraging event comparable to May 2021 and the FTX crash in 2022.
- Open interest has rebuilt rapidly to near all-time highs, reflecting quick repositioning.
- Technical indicators show heavy demand for short-term downside protection, while long-dated options remain relatively stable.
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