Bitcoin Slides to $92,500 as Derivatives Rally Fades, Market Remains Fragile

Bitcoin started the Asian trading week under pressure, falling roughly 3% to trade near $92,500 as momentum from a derivatives-driven rally weakened. The pullback highlights the fragile state of the crypto market, even as some indicators suggest that the heavy sell pressure seen in late 2025 is gradually easing.

The world’s largest cryptocurrency retreated from a recent attempt to break into the mid-$90,000 range. Data from CoinGlass showed that more than $680 million worth of crypto positions were liquidated in the past 24 hours, with nearly $600 million coming from long positions. This wave of liquidations indicates that bullish bets had become overcrowded after the recent rally, leaving the market vulnerable to a sharp correction.

Altcoins saw even steeper losses during Monday morning trading in Asia. Solana dropped about 6.7%, SUI slid 10%, and ZCash also fell around 10%, reflecting broader risk-off sentiment across the digital asset space. In contrast, traditional safe-haven assets moved higher, with gold rising 1.7% to around $4,600 following news of a new 10% tariff imposed on Denmark and several other European countries amid renewed geopolitical tensions.

According to Glassnode’s latest weekly report, bitcoin’s move toward $96,000 was largely driven by mechanical factors in the derivatives market, including short liquidations, rather than sustained spot market demand. The firm noted that futures liquidity remains thin, making prices susceptible to abrupt reversals once forced buying subsides. It also highlighted a crowded supply zone where long-term holders accumulated near previous cycle highs, an area that has repeatedly limited upside moves.

CryptoQuant offered a more cautious interpretation, suggesting the rally since late November could represent a bear market rally rather than the start of a new uptrend. Bitcoin remains below its 365-day moving average near $101,000, a level historically viewed as a key regime boundary. While some stabilization is evident, with slower long-term holder selling and improving spot flows, analysts agree that without sustained spot demand, bitcoin will remain highly sensitive to leverage and liquidity shifts.