Bitcoin’s price hovers above $111,000, up 2% from last week’s high. Market exhaustion is evident as capital shifts from spot to derivatives. Short-term holders face losses below $113,000, while long-term holders sell 22,000 BTC daily. Glassnode warns of deeper losses if $113,000 isn’t reclaimed, as traders prepare to sell into volatility.

ETF inflows cool as exchange reserves rise, signaling a capital rotation within crypto. Options data show caution, with record-high open interest as traders hedge downside risks. Market makers’ hedging and rising put demand cap rallies, shaping price action more than directional conviction.

Bitcoin’s market remains in limbo, driven by risk management rather than conviction. Consolidation rather than collapse is suggested by liquidity staying within crypto. A meaningful recovery awaits renewed spot demand and calmer derivatives activity, possibly influenced by Fed rate cuts or ETF inflows. Volatility reigns, but even traders tire of fear.

Read more at Yahoo Finance: Bitcoin’s Rally Cools as Traders Hedge the Heat