Bitcoin Holds Strong at $92K Amid Market Pressures
Bitcoin is sustaining its value above the $92,000 mark, although outflows from spot ETFs and increasing geopolitical tensions pose risks to its stability. Traders are now contemplating whether to buy into the dip.
Key Takeaways:
- The futures premium for BTC remains near 5%, indicating that leverage demand isn’t significantly affected despite a failed attempt to break past $98,000.
- Bitcoin ETFs experienced a massive outflow of $395 million as gold achieved new highs, reducing the appeal of Bitcoin as a hedge.
Nevertheless, Bitcoin witnessed a correction of 3.4% over the weekend as investors sought to mitigate risks amid escalating global tensions and China’s slowest economic growth since 2022. A retracement at the $92,000 level took many traders by surprise, resulting in the liquidation of $215 million in leveraged BTC futures long positions.
Market Analysis
Source: Cointelegraph
On Monday, Nasdaq index futures dipped following US President Donald Trump’s announcement of new tariff proposals targeting several European countries. These tariffs are designed to pressure negotiations regarding Greenland, which is controlled by Denmark. As a result, European nations are considering retaliatory actions regarding imports from the US.
Signs of Waning Interest in BTC Derivatives
With US markets closed for a public holiday, investors pivoted to cash and precious metals, resulting in a 1.6% decline in the Euronext 100 Index and gold prices exceeding $4,650 for the first time. Despite Bitcoin briefly recovering to $93,000, the general sentiment in the market was that cryptocurrencies are still seen as risk-on assets instead of safe havens.
The annualized premium for Bitcoin futures hovered around the neutral-to-bearish level of 5%. This situation indicates a lack of enthusiasm within BTC derivatives, potentially reflecting diminishing interest from institutional investors. Bitcoin ETF outflows continued to weigh on market sentiment, while bullion prices continued to soar.
BTC Futures Basis Rate
Source: TradingView
The BTC options delta skew at Deribit surged to 8%, suggesting that put options are trading at a premium. Normally, this indicator would range between -6% to +6% in stable market conditions. The recent downturn in Bitcoin prices has diminished confidence among whales about a potential breakout beyond the $100,000 threshold.
Saravelos pointed out that “European countries own $8 trillion of US bonds and equities, almost twice as much as the rest of the world combined,” suggesting that if the “Western alliance” faces serious disruptions, Europe may hesitate to support the US dollar.
China’s economy recorded a year-on-year growth of 4.5% in the last quarter of 2025, down from 4.8% in the previous quarter. Analysts caution that stimulus policies introduced in 2025 could be adjusted, given the possibility of a global trade war impacting exports.
Declining Activity on Bitcoin Network
Source: Nansen
A drop in Bitcoin network activity has increased concerns regarding its blockchain’s health, which is crucial for sustained mining investment. Daily active addresses have declined to 370,800, down by 13% from two weeks ago.
Given the weak indicators emerging from BTC derivatives, maintaining the $92,000 level may prove challenging as investors remain cautious about a potential global economic slowdown and its ramifications stemming from the current geopolitical climate.
