After a strong correction at the start of the week, Bitcoin has regained a certain balance, moving around $92,000. Investors are reassessing risks amid a tense global backdrop, while inflows into spot Bitcoin ETFs continue to carry hopes of long-term structural support. Despite the prevailing uncertainty, buyers remain present.
In brief
- Bitcoin holds near $92,000 after a sharp fall, with sustained inflows into ETFs.
- Over $865 million in liquidations reduced leverage, which helped stabilize prices.
- Options markets are showing strong demand for downside hedging, a sign of expected volatility.
- Tensions between the United States and Europe, particularly on the trade level, continue to weigh on the crypto market.
A fragile stabilization driven by ETFs
The price of Bitcoin has remained generally stable over the past 24 hours, moving around $92,000, according to on-chain data. Monday's drop coincided with rising trade tensions between the United States and Europe, leading to more than $865 million in liquidations across crypto markets. However, the selling pressure quickly eased, allowing a partial recovery in prices.
Analysts at ZeroCap, a company specializing in investments in digital assets, believe that this ability to rebound reflects an underlying demand that is still present. In a report released Tuesday, they note that buyers moved in quickly after the drop, suggesting that the majority of macroeconomic fears were already integrated into the courses.
According to these analysts, current market conditions resemble an initial phase of a gradual return to risk assets, supported by regular flows into spot Bitcoin ETFs.
In recent weeks, demand for spot ETFs has been a key factor. Weekly net flows rose to a three-month high, providing structural support to the market even as short-term investors reduce their exposure. Long-term players, meanwhile, appear less sensitive to daily price fluctuations and remain focused on growing Bitcoin adoption and regulated access to the asset.
Several forces are shaping current market behavior:
- Spot Bitcoin ETFs continue to attract steady capital from institutional investors.
- Massive liquidations at the start of the week helped purge excess leverage.
- Options market data indicates increased demand for downside protection.
- Trade disputes between the United States and Europe are affecting overall risk sentiment.
- Regulatory and legal uncertainty persists in the United States.
However, not all analysts share the same optimism. Sean Dawson, head of research at Derive (an on-chain options platform), warns that short-term volatility remains likely. In particular, he cites a drop in delta 25 skew, signaling increased interest in put options, evidence that many investors are looking to hedge against a further decline.
Tariff and geopolitical tensions weigh on risky assets
Macroeconomic and geopolitical risks remain key to short-term market movements. A point of tension concerns the growing tensions between the United States and Europe over Greenland. The situation became tense after exchanges between Donald Trump and Norwegian Prime Minister Jonas Gahr Støre.
These exchanges revived the debate on sovereignty and security in the Arctic. Norway recalled that Greenland fell under Danish sovereignty and reaffirmed its attachment to NATO.
Separately, Trump threatened to impose tariffs of up to 25% on certain European imports, adding further pressure to global markets. Farzam Ehsani, CEO of the VALR platform, recalls that prolonged trade conflicts often have a negative impact on digital assets like Bitcoin.
According to him, current prices reflect concern about a possible intensification of these tensions, likely to exacerbate the pressure on risky assets. Even though some on-chain indicators are showing early signs of stabilization, the environment remains uncertain.
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