Bitcoin has rebounded to around $92,000 after last week’s $2 billion liquidation event, but traders are adopting cautious positioning amid high volatility and looming central bank decisions.
According to market maker Wintermute, market activity has narrowed sharply into Bitcoin and Ethereum, with investors favoring delta-neutral and carry strategies over directional altcoin exposure while awaiting clarity from the Federal Reserve and macro indicators.
The consolidation follows two months of macro uncertainty that triggered strong market turbulence. Total crypto market capitalization has recovered to approximately $3.25 trillion.
Yet, compressed basis rates and subdued funding levels indicate limited appetite for leveraged positions ahead of this week’s Fed decision and next week’s Bank of Japan rate announcement.
Source: Wintermute
Friday’s sharp drawdown was a major blow to Bitcoin’s recovery, with cascading liquidations erasing roughly $4,000 in just over an hour.
The liquidation event eliminated approximately $2 billion in leveraged positions, briefly pushing Bitcoin below $88,000 before buyers stepped in at lower levels.
Despite the violent intraday move, the market absorbed the shock without triggering sustained selling pressure.
Glassnode data shows Bitcoin’s 14-day RSI climbing from 38.6 to 58.2, while spot volume increased 13.2% to $11.1 billion.
This suggests buyers remained active at the lows even as broader conviction remains uneven across on-chain, derivatives, and ETF metrics.
Source: Glassnode Report
Year-end implied volatility remains elevated, with traders positioning for either $85,000 or $100,000 by December 26.
Options data reveals heightened caution, with the 25-delta skew reaching 12.88% and volatility spread turning sharply negative at -14.6%, indicating strong demand for downside protection despite the recent bounce.
Source: Glassnode
ETF flows have emerged as a major headwind, flipping from a $134.2 million inflow to a $707.3 million outflow.
Source: Glassnode Report
The reversal indicates profit-taking or weakening institutional interest following Bitcoin’s recent volatility, which is adding pressure to near-term price action.
While ETF trade volume rose 21.33% to $22.6 billion and ETF MVRV increased to 1.67, the substantial outflows suggest some investors are taking advantage of elevated prices to reduce exposure.
Source: Glassnode Report
Speaking with Cryptonews, Arthur Azizov, founder and investor at B2 Ventures, noted the impact of persistent withdrawals.
