News author: Crypto Emergency
Over the past 24 hours, the crypto market has experienced a sharp decline: according to CoinGlass, the total liquidation volume exceeded $680 million, of which about $600 million was attributed to long positions. This indicates market overheating following the recent rally and excessive optimism among traders.
During the morning trading in Asia, pressure increased on altcoins:
SOL lost 6.7%
SUI - 10%
ZEC - 10%
Against the backdrop of market turbulence, gold continued to strengthen, rising by 1.7% to $4,600 after the introduction of a 10% tariff against Denmark and several European countries.
Liquidity remains weak
According to the weekly report by Glassnode, the rise of Bitcoin to $96,000 was primarily driven by derivatives - specifically, the liquidation of short positions - rather than sustained demand in the spot market.
Analysts note:
• Liquidity in futures remains low,
• Price is becoming vulnerable to sharp reversals,
• The supply zone formed by long-term holders at cycle highs continues to limit growth.
Rally or still a bear market?
CryptoQuant took a more cautious position in a recent report, calling the current movement a possible rally in a bear market rather than the beginning of a new bull trend.
Key observations:
• Bitcoin remains below the 365-day moving average (~$101,000), which has historically served as a 'regime boundary',
• Demand in the spot market continues to decline,
• Inflows into spot BTC ETFs in the USA remain moderate.
Nevertheless, there are signs of stabilization:
• Long-term holders have slowed asset distribution,
• Buying spot flows on Binance have intensified,
• Sales through Coinbase have decreased.
Options signal uncertainty
Glassnode notes that implied volatility remains low, however, protection against a decline is still embedded in long-dated options. This indicates ongoing caution among investors.
Both analytical companies agree: until sustainable demand in the spot market is restored, Bitcoin will remain sensitive to changes in leverage and overall liquidity.