Bitcoin Price Stalls as Leveraged Positions Unwind
Bitcoin's price stagnated this week after a brief rally following the Federal Reserve's decision to hold interest rates steady and a subsequent wave of leveraged position unwinding. The cryptocurrency reached $85,594 before reverting to near-flat levels on Wednesday.
This comes as Bitcoin logs its strongest quarter since 2024, with a 43% rise in Q3. However, the market remains uncertain, with many traders holding back from making fresh bets.
According to Tagus Capital, most of the speculative leverage accumulated during the recent price surge has been unwound, leaving perpetual futures positioning close to neutral.
In options markets, Deribit data suggest a constructive near-term setup, but traders are also adding downside protection around $70,000 for year-end. The Bitcoin derivatives market has reset in an orderly fashion, which tends to precede low forward volatility, said Vetle Lunde of K33.