Bitcoin nudged higher overnight, trading around $109,448, as markets showed signs of stabilisation following a wave of forced liquidations across crypto derivatives.

Stock market information for Bitcoin
Bitcoin is a crypto in the CRYPTO market.
The price is 109448.0 USD currently with a change of 30.00 USD from the previous close.
The intraday high is 110305.0 USD and the intraday low is 108741.0 USD.

Ethereum outperformed, crossing the $4,000 threshold, while broader sentiment remains under strain amid macro uncertainty.

Crypto markets endured brutal deleveraging earlier in the week, with more than $1.5 billion in long positions wiped from derivatives across major tokens. Analysts report that Ether accounted for a significant share of that, prompting cascade liquidations in leveraged positions. Some firms with heavy Bitcoin exposure have seen their stock valuations collapse below the value of token holdings.

Investors tagged this as the sharpest deleveraging event of 2025, emphasising how excess leverage built up in recent months is being violently unwound. That same vulnerability leaves markets sensitive to any surprise in macro data or central bank commentary.

The immediate bounce in Bitcoin and Ether is viewed as corrective rather than structural-several traders suggest the market may trade sideways or drift lower unless fresh catalysts emerge. The rebound succeeded in erasing some losses, but resistance above $110,000 for Bitcoin and around $4,200 for Ether remained challenging.

The U. S. personal consumption expenditures index for August showed year-on-year inflation of 2.7%, broadly in line with expectations. That alignment suggests policymakers are threading a narrow path between supporting growth and avoiding inflation surprises. Some strategists believe the muted inflation reading reduces pressure on central banks to delay easing; others caution that sticky core inflation still leaves room for hawkish surprises.

Crypto sentiment has weakened sharply. The Fear & Greed Index plunged to levels last seen in mid-April, underscoring elevated trader anxiety. According to strategists, over $3 billion of leveraged long positions have been liquidated in the past few sessions, pushing the long-to-short ratio in many tokens toward one-to-nine. That extreme positioning could set the stage for short squeezes-but not without attendant risk.

On-chain flows hint at institutional accumulation, a counterpoint to retail panic. Ethereum has seen meaningful inflows tied to existing ETH ETFs, while some large wallets have made ETH-to-BTC swaps. That movement could reflect growing conviction in Ethereum as a structural play for DeFi and smart contract demand, rather than a pure speculative asset. But challenges remain: Ethereum's fee-based economics have softened, and alternative chains are gaining traction in niche sectors.

Seasonal models bolster optimism toward the year-end. Historically, Bitcoin has delivered an average return of over 80 per cent in the final quarter, with November being the strongest month on record. Ether, though more volatile, also has a track record of strong Q4 performance. These patterns are not guarantees, but they influence positioning among quantitative funds.

Arabian Post – Crypto News Network

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