Rich by Coin

Bitcoin (BTC) retreated from a derivatives-driven rally as long-position liquidations intensified, dampening upside momentum. On-chain data indicated the move toward $96,000 was driven more by futures short-coverings than by solid spot demand, supporting a view that the rally had been mechanically propelled rather than demand-driven. CryptoQuant places the regime boundary below the 365-day moving average near $101,000, noting that spot demand and ETF inflows remain constrained and leaving the market sensitive to leverage and liquidity shifts. The decline was echoed in the broader derivatives market, where large-scale liquidations accompanied the retreat.

In this environment, long-position pressure and leverage dynamics have kept volatility elevated, even as spot demand shows tentative improvement. Altcoins came under pressure as well, with Solana (SOL) down about 6.7% and SUI and ZEC each sliding roughly 10%. Gold rose about 1.7% to around $4,600 per ounce amid geopolitical and trade risk, underscoring the preference for safe-haven assets in times of macro tension. The prevailing narrative suggests the current rebound may have been driven more by derivatives activity than by genuine spot accumulation, raising cautions about sustainability.

CryptoQuant offered a more cautious take, suggesting the November-to-December uptick could represent a bear-market rally, with BTC trading below the regime boundary near the 101,000 level and limited spot demand and ETF inflows. Nonetheless, Glassnode noted some stabilization signals, including slower long-term holder distribution since late 2025 and stronger buy-side pressure on major exchanges like Binance, even as Coinbase-led selling eased. The options market shows subdued near-term implied volatility but persistent hedging demand for longer tenors, sustaining a cautious sentiment. Absent a clear revival in spot demand, BTC is expected to remain sensitive to leverage and liquidity shifts, continuing to trade in a regime where price action is driven by derivatives and liquidity dynamics rather than solid spot buying.