Crypto Markets Turn Choppy as Bitcoin Reclaims $90K

• Bitcoin dipped below $85K and Ether under $3K as thin liquidity amplified sell-offs and leveraged positions unwound.
• Over $1.4B in liquidations hit markets last week, with derivatives driving sharp intraday price swings.
• Bitcoin dominance rose as institutions favored BTC and ETH, while retail traders rotated away from altcoins.

Crypto markets faced sharp pressure last week as prices fell, liquidations surged and liquidity thinned ahead of the holidays. According to Wintermute, Bitcoin dropped below $85,000 midweek, while Ether slipped under $3,000 during global trading sessions. Leveraged positions unwound, driven by selling pressure and thin order books.

Price Swings and Liquidation Pressure

At the start of the week, selling intensified across major cryptocurrencies. Notably, Bitcoin fell below $85,000 by midweek before stabilizing. Ether followed a similar path, dropping under $3,000 during the same period. As prices declined, liquidations accelerated sharply.

Wintermute reported roughly $600 million in liquidations on Monday. Subsequently, another $400 million occurred on both Wednesday and Thursday. However, by week’s end, volatility eased slightly. Bitcoin gradually climbed back toward $90,000 as trading activity slowed.

Flow Data and Market Structure Shifts

As prices fluctuated, broader market structure continued to tighten. Notably, Bitcoin dominance increased again, extending a trend seen throughout the second half of the year. Meanwhile, altcoins lagged, weighed down by supply overhangs and scheduled token unlocks.

According to Wintermute’s internal flow data, buying pressure persisted in major assets. Bitcoin maintained sustained inflows, while Ether showed renewed buying interest near year-end. Institutional flows remained consistent since summer, while retail traders rotated away from altcoins toward Bitcoin and Ether.

Derivatives, Positioning and Year-End Conditions

Despite steady spot buying, derivatives continued to drive price discovery. As a result, sharp intraday drops emerged when leveraged positions unwound quickly. This dynamic appeared in positioning data, with funding rates and basis remaining compressed during the sell-off.

Meanwhile, options markets priced wide outcomes, with implied volatility elevated. Traders positioned for both a decline toward the mid-$80,000 range and a rebound toward recent highs. Looking ahead, Wintermute noted lighter activity into year-end, as liquidity stayed thin and desks wound down.