Bitcoin 
$77,112, which had been experiencing a steady rise since the summer, has recently lost momentum. According to CryptoAppsy data, Bitcoin, trading around $111,000 at the time of the report, has only increased by 2% in the past week. This pullback from the record high of over $126,000 indicates that the momentum has slowed, and investors are leaning towards risk aversion.
Spot Demand Declines as Derivative Volume Grows
Glassnode‘s recent data shows Bitcoin facing a weakening below the cost base of short-term investors at $113,000. Falling below this level means new buyers are at a loss, and market confidence is weakened. The analytics firm also notes that the historical range of $108,000–$97,000 corresponds to a region where 15–25% of the supply is at a loss. Long-term investors’ sales of up to 22,000 BTC per day since July are dampening recovery efforts.
Data from CryptoQuant reveals that capital has not exited the cryptocurrency market but has shifted from spot markets to derivatives. The halt in ETF inflows and the increase in exchange reserves reflect investors’ attempts to benefit from volatility. Similar to structural transitions seen in mid-2021 and 2022, the cryptocurrency market appears to have entered another derivative-centered cycle.
Options Demand Reflects Risk Aversion
Glassnode reported that open positions in the options market have reached record levels. Investors now focus on protection rather than upward movement. Intervals saw a significant increase in put demand. Market makers’ delta-neutral positions limit price fluctuations, offsetting rises with sales and falls with purchases. As a result, price movements are shaped more by risk management strategies than directional convictions.
CryptoQuant analysts interpret the current situation in Bitcoin as a sign of consolidation rather than collapse. The liquidity remains within the ecosystem, and investors avoid taking new positions without a clear macro signal or a Fed rate cut expectation. A sustained recovery is said to require a strengthening of spot demand and normalization of derivative volatility.
