Bitcoin whale selling and put demand intensify in 'two-way, headline-driven market'

Bitcoin traded slightly above the $110,000 support level after a 12% drop from last week’s record highs as whale selling, surging put demand, and renewed U.S.–China tariff tensions pressure markets, according to analysts.

The leading cryptocurrency briefly slipped to $109,800 before recovering to $111,200 — down nearly 2% on Thursday after the largest deleveraging event in crypto history — The Block’s price page shows.

More than an estimated $19 billion in crypto positions were liquidated last weekend amid cascading forced sales and exchange dislocations, marking what Bitwise CIO Matt Hougan called a structural “reset” rather than a collapse.

“Bitcoin is testing a crucial floor at $110K as whales trim exposure and put demand spikes,” said Timothy Misir, head of research at BRN. “Bulk puts exceeded $1.15 billion, comprising 28% of trade flow, while call interest remains concentrated around $115K–$130K. It’s selective distribution, not panic.” Misir noted that large holders with 10–10,000 BTC sold about 17,500 coins, but remain net buyers year-to-date, adding over 318,000 BTC overall. It’s more rotation than mass exit, he stated.

Options data from The Block's dashboard show a put-call open interest ratio above 0.5, with short-dated skew turning sharply negative as traders hedge against further downside. Implied volatility has climbed back above 60%, near levels seen during the early October drawdown.

Ethereum traded below $4,000, while Solana and XRP each dropped by more than 3% as the crypto rout continued. Total crypto market capitalization fell to $3.8 trillion, and The Block’s Fear & Greed Index sits at 28, indicating rising caution.

Meanwhile, CoinGlass liquidation data shows that more than $500 million in leveraged positions have been closed in the last 24 hours. The platform recorded a similar wipeout during early European hours on Tuesday.

Macro jitters have likely amplified the downturn. Tariff threats between Washington and Beijing, combined with an ongoing U.S. government shutdown, have reduced risk appetite for crypto assets.

Still, some experts see strength beneath the surface. Matt Mena, crypto research strategist at 21Shares, wrote that “Bitcoin’s resilience amid macro crosscurrents and aggressive deleveraging shows how structural demand — anchored by ETF inflows and a more dovish policy outlook — continues to provide a floor.”

He pointed to over $6 billion in U.S. ETF inflows over the past month and said that with “leverage flushed and policy easing approaching, the setup into year-end appears increasingly constructive,” suggesting a path toward $150,000 Bitcoin if institutional demand holds.

Yet, Mena warns that the near-term technical picture looks fragile. A decisive break below $110,000 could open a move toward $104,000–$108,000, while reclaiming $115,000 would reestablish bullish momentum.

“The surge in put buying signals fear,” Misir added, “but call concentrations at higher strikes show institutions are hedging, not leaving. This remains a two-way, headline-driven market.”