Bitcoin dropped about 3% to $92,500 as Asia kicked off the trading week, retreating from a push toward the mid-$90,000s as the derivatives-driven rally lost steam. CoinGlass data showed more than $680 million in crypto positions were liquidated over the past 24 hours, with roughly $600 million from long positions — a sign that bullish positioning had become crowded.
Altcoins hit, gold soars
Alternative coins took a heavier hit during Monday morning trading in Asia: SOL fell 6.7%, SUI dropped 10%, and ZCash slid 10%. Gold, meanwhile, climbed 1.7% to $4,600 after the U.S. slapped a 10% tariff on Denmark and seven other European countries until “a deal is reached for the complete and total purchase of Greenland.”
Derivative-driven rally lacks foundation
Glassnode’s weekly report noted that bitcoin’s advance toward $96,000 was largely “mechanically” driven by derivatives flows, including short liquidations, rather than sustained spot accumulation. The on-chain analytics firm said futures liquidity remains relatively thin, leaving price action vulnerable to sharp reversals once forced buying fades. A crowded supply zone formed by long-term holders near cycle highs has repeatedly capped recent rebounds.
CryptoQuant warns of bear market rally
CryptoQuant took a more cautious stance in its latest weekly report, characterizing the move since late November as a potential bear market rally rather than a new uptrend. Bitcoin remains below its 365-day moving average near $101,000, a level that historically acts as a “regime boundary.” While demand conditions have improved at the margin, apparent spot demand is still contracting and U.S. spot ETF inflows remain modest.
Stabilization signs and lingering uncertainty
Some stabilization signals exist. Glassnode observed a significant slowdown in long-term holder distribution compared with late 2025, and spot flows on major exchanges like Binance have turned more buyer-dominant, while Coinbase-led selling has eased. Options markets reflect caution: implied volatility remains low, but downside protection is still priced into longer-dated contracts, suggesting investors remain wary.
Until sustained spot demand re-emerges, both firms say bitcoin is likely to remain sensitive to leverage and liquidity shifts, keeping market participants on edge.