Bitcoin’s Hold of $109k Shaky as Whales Move Into ETH
Bitcoin (BTC) has been trading within a narrow 2.3% range since its sharp decline from $112,500 on Friday, partly due to the absence of momentum from regulated markets being closed for the US Labor Day holiday. However, Bitcoin derivatives markets indicate a growing lack of confidence in the $108,000 support level among major players. The Bitcoin monthly futures annualized premium currently sits at 7%, which is firmly within the neutral 5% to 10% range and flat compared to the previous week.
The indicator last showed signs of bullishness on Aug. 24, following the rally to $117,000 after US Federal Reserve Chair Jerome Powell’s speech raised hopes for a less restrictive monetary policy. Despite this, the price of gold has gained 2.1% since Friday, worsening Bitcoin traders’ sentiment as the cryptocurrency posted a 12.5% decline from the Aug. 14 all-time high.
Bitcoin Price Decouples from Gold Amid Whale Selling Pressure
Investors are questioning whether the recent downturn reflects broader risk aversion or factors unique to Bitcoin, particularly after some long-time holders decided to liquidate part of their positions. A Bitcoin whale who had previously held for more than five years began rotating funds into Ether (ETH) on Aug. 21, selling $4 billion worth of Bitcoin through the decentralized exchange Hyperliquid. According to Nicolai Sondergaard, research analyst at crypto intelligence platform Nansen, this movement highlights a “rotation” as altcoins appear to benefit from expanding corporate accumulation.
Bitcoin put (sell) options are trading at a 7% premium compared to call (buy) instruments, according to the Deribit skew metric. This type of imbalance is common in bearish markets, and the indicator has remained above the neutral 6% threshold for the past week. Whales and market makers show little confidence that the $108,000 support level will hold. The $127 million net outflows from US spot Bitcoin exchange-traded funds on Friday provide another sign of discomfort among holders.
Related Market Trends and Economic Indicators
Yields on United Kingdom 20-year government bonds surged to their highest levels since 1998, with investors demanding higher returns to hold government bonds. This signals expectations of either stronger inflation or depreciation of domestic currencies. In either case, rising long-term yields increase financing costs for future debt rollovers and new issuance. Even speculation around such risks could further strain national finances and potentially spill over into the eurozone due to ongoing fiscal concerns.
$390 million in bullish leveraged positions face liquidation if Bitcoin’s price falls below $107,000, according to CoinGlass estimates. Still, the near-term outlook for Bitcoin likely hinges on US job market data due Friday. A potential uptick in unemployment could act as a positive catalyst for risk-on assets, as it would increase pressure on the Federal Reserve to accelerate interest rate cuts.
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