Bitcoin (BTC), currently priced around $107,209, saw notable volatility early this week, with sharp price swings over the weekend and Monday triggering a significant shakeout in the derivatives market.
Data from Glassnode reveals that within a 24-hour period, $28.6 million in long positions and $25.2 million in shorts were liquidated. This rare simultaneous liquidation on both sides caught leveraged traders off guard, highlighting a rapid shift in market sentiment.
BTC-denominated open interest dropped approximately 7%, declining from 360,000 to 334,000 BTC. This sharp reduction suggests a temporary clearing of speculative leverage, indicating the market is entering a reset phase.
While Bitcoin continues to trade within the $100,000 to $110,000 range, onchain metrics signal cooling activity. Profitability is waning, and user engagement remains muted, pointing toward a consolidation period. According to Glassnode, the market appears to be digesting recent gains, likely awaiting renewed demand to propel the next upward move.
From a technical standpoint, Bitcoin has struggled to break above the external liquidity zone near $109,000, leading to a gradual decline on the 4-hour chart. Price action is currently confined within a descending channel, with key support identified between $103,400 and $104,600.
Since BTC is accumulating internal liquidity in this range, a bullish breakout above the descending channel remains possible. However, until momentum strengthens and onchain activity picks up, the broader market structure may remain range-bound.
Inflation Concerns Weigh on Bitcoin’s Outlook
Bitcoin faces headwinds amid rising core inflation. Despite optimistic speculation about an interest rate cut, recent inflation data indicates the Federal Reserve is unlikely to alter its current stance soon.
The Personal Consumption Expenditures (PCE) inflation metric, favored by the Fed, rose to 2.3%, matching expectations, while Core PCE inflation increased to 2.7%, slightly exceeding forecasts of 2.6%. This marks the first increase since February 2025, signaling renewed inflationary pressure.
With inflation proving persistent, the Fed is expected to maintain its rate pause, keeping financial conditions tight. This environment remains challenging for risk assets such as Bitcoin.
Supporting this cautious view, Glassnode’s data shows a modest $7.7 billion rise in spot volume during Q2, while transfer volume dropped 36% earlier in the quarter, underscoring a lack of speculative urgency in the market.
June 2025, Cryptoniteuae