Bitcoin 
$76,252 recently experienced a significant downturn, hitting a seven-week low at approximately $109,000. This decrease, combined with compulsory liquidations in derivative markets, led to a roughly 2% decline in the overall cryptocurrency market’s value. According to CoinGlass data, more than $900 million in leveraged positions were liquidated over the past 24 hours, with a significant portion originating from long trades. Market experts attribute the heightened short-term volatility to increased apprehension preceding macroeconomic data releases.
Bitcoin Battles Volatility and Derivative Market Pressure
Dr. Sean Dawson, Head of Research at Derive.xyz, pointed out that the cryptocurrency market commenced the week with a downturn. Bitcoin’s daily volatility surged from 15% to 38%, while Ethereum’s volatility jumped from 41% to 70%. This market activity is linked to rising macroeconomic concerns following a higher-than-expected U.S. Producer Price Index (PPI). Investors are seeking hedging strategies prior to the release of GDP on August 28th and employment data in early September.
In options markets, the 25-delta skew indicator turned negative, suggesting rising demand for put options on both BTC and ETH. Dawson noted that the past two weeks have witnessed the most robust demand for downside protection. Derive data indicates an increased likelihood of Bitcoin retesting the $100,000 level and Ethereum 
$2,276 aiming for $4,000 by the end of September.
Glassnode data reveals a 2.6% decrease in total open interest (OI) in Bitcoin futures, falling by approximately $2 billion. In contrast, long-oriented funding payments soared by 29%, reaching $3.6 million. This situation suggests a fragile scenario if momentum weakens.
Timothy Misir, Head of Research at BRN, described the recent downturn as a leverage cleaning process in a weakening market profile. According to Misir, 24-hour liquidations neared $1 billion, and Bitcoin’s dip below the $110,000 short-term investor cost base could compromise the technical outlook. He emphasized the importance of $103,700 and $100,800 levels as critical benchmarks.
Institutional Acquisitions Persist
Nevertheless, institutional investors continue limited acquisitions. On Monday, Strategy acquired 3,081 BTC for $357 million. BitMine Immersion expanded its Bitcoin holdings by $2.2 billion last week. Additionally, there was a daily net inflow of $444 million into spot Ethereum ETFs, surpassing Bitcoin ETFs.
On the macroeconomic front, uncertainties regarding the Fed’s interest rate cut trajectory have resurfaced. Although Fed Chair Jerome Powell delivered dovish messages at last week’s Jackson Hole meeting, President Donald Trump’s attempt to dismiss Fed Governor Lisa Cook raised concerns about the central bank’s independence. Currently, the CME FedWatch tool shows an 84.3% probability of an interest rate cut at the September Fed meeting.
