- Bitcoin fell 6% to US$109,277 as other major cryptocurrencies suffered even steeper losses.
- Market data reveals distribution currently leads over accumulation, with long-side liquidations rising and futures open interest falling from US$44.8 billion to US$42.7 billion.
- Long-term holders have realised profits on US$3.4 million BTC just as ETF inflows cooled around the FOMC meeting, creating a “buy the rumour, sell the news” scenario.
- Short-term holders are attempting to defend key levels but appear to be absorbing rather than overpowering the wave of selling pressure from profit-taking.
The Bitcoin price – and the overall crypto market for that matter – continues to be on a wobbly path. Most cryptocurrencies are down dramatically, with Solana losing 20% week-on-week, and Ethereum dropping 13%.
XRP is also down 9%, while Bitcoin dropped only 6% over the same time frame. Still, given BTC’s high price, a drop of a few percent, makes for a large dollar-drop. The OG crypto currently trades for US$109,277 (AU$167,091), 12% below its all-time high of US$124,457 (AU$190,303) – a difference of roughly US$15k (AU$22.9k).
So, naturally, investors are wondering what’s next for the largest crypto. Are buyers actually stepping in or are they taking profits off the table?
Here’s What the Data Says
According to recent data, the market appears to be caught in a delicate balance between fresh buying and sustained profit-taking, though the weight of evidence suggests distribution is currently in the lead.
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There’s a notable rise in long-side liquidations alongside a reduction in open interest, pointing to a market where leveraged buyers are being squeezed out rather than confidently adding exposure.
[…] futures open interest fell sharply from $44.8B to $42.7B as Bitcoin broke below $113k.
GlassnodeThis picture of buyer hesitation is reinforced by the fact that volumes during the recent retracement have largely been driven by defensive flows rather than aggressive spot demand. Glassnode, in its Week On-chain: From Rally to Correction report, highlights that long-term holders have realised an extraordinary 3.4 million BTC in profits, with supply hitting the market just as ETF inflows cooled sharply around the FOMC meeting.
The report characterises the dynamic as a textbook case of “buy the rumour, sell the news,” noting that structural exhaustion is beginning to set in after the rally.
While short-term holders and some spot buyers are attempting to defend key levels near their cost basis, the data suggests they are absorbing, rather than overpowering, the wave of distribution. For now, the market tone is tilted toward profit-taking rather than renewed accumulation, it appears.
Unless demand from institutions and holders aligns again, the risk of deeper cooling remains high, highlighting a macro structure that increasingly resembles exhaustion.
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