Bitcoin opened the week under pressure in Asia, slipping roughly 3% to trade near $92,500 as a derivatives-driven rally lost momentum.
The decline highlights the market’s precarious footing, even as there are early signs that the intense selling seen late in 2025 is beginning to ease. Bitcoin has pulled back from a recent move toward the mid-$90,000 range, with liquidation data pointing to overcrowded bullish positioning. CoinGlass reported that more than $680 million in crypto positions were liquidated over the past 24 hours, with close to $600 million coming from long trades.
Altcoins bore the brunt of the selloff during Monday’s Asia session. Solana fell 6.7%, Sui slid 10%, and Zcash dropped 10%. Outside of digital assets, gold extended its rally, climbing 1.7% to $4,600 after the U.S. announced a new 10% tariff on Denmark and seven other European countries, set to remain in place until “a deal is reached for the complete and total purchase of Greenland.”
In its latest weekly report, Glassnode said bitcoin’s advance toward $96,000 was largely “mechanical,” driven by derivatives flows such as short liquidations rather than sustained spot demand. The on-chain analytics firm cautioned that futures market liquidity remains relatively thin, leaving prices vulnerable to abrupt reversals once forced buying pressure fades.
Glassnode also pointed to a congested supply zone formed by long-term holders who accumulated near prior cycle highs, an area that has repeatedly capped recent rebound attempts.
CryptoQuant struck a more cautious tone, describing the move since late November as a potential bear-market rally rather than the beginning of a durable uptrend. Bitcoin remains below its 365-day moving average near $101,000, a level the firm described as a key “regime boundary.” While demand conditions have improved slightly, CryptoQuant said they have not shifted materially, with apparent spot demand still contracting and U.S. spot ETF inflows remaining modest.
There are some signs of stabilization. Glassnode noted that long-term holder distribution has slowed markedly compared with late 2025, while spot flows on major exchanges such as Binance have turned more buyer-dominant. At the same time, selling pressure linked to Coinbase has eased.
Options markets continue to reflect caution. Implied volatility remains low, but downside protection is still priced into longer-dated contracts, suggesting investors remain wary.
Until sustained spot demand returns, analysts warn that bitcoin is likely to remain highly sensitive to shifts in leverage and liquidity, keeping markets on edge.
