Bitcoin (BTC) is navigating a period of heightened uncertainty as its price struggles to regain upward momentum following recent declines. Over the past 24 hours, the world’s largest cryptocurrency recorded a dip to $114,326 before slightly recovering above the $115,000 mark.
Despite this rebound, the asset remains under pressure, with recent market movements highlighting potential shifts in trader sentiment and long-term holder behavior.
Data shared by market analysts indicates that derivatives activity is playing a significant role in current price fluctuations. Insights from the analytics platform CryptoQuant suggest that sudden changes in leveraged positions and aggressive selling pressure on major exchanges are contributing to the ongoing volatility.
At the same time, on-chain data shows an increase in activity from long-term Bitcoin holders, suggesting a structural change in the market that may influence future price dynamics.
Leveraged Positions Under Pressure on Major Exchanges
According to a recent analysis by CryptoQuant contributor Amr Taha, Bitcoin’s decline below $115,000 coincided with a notable reduction in open interest on Binance, dropping from $14 billion to under $13.5 billion in a short span.
This 4% decline in open interest within a single day is often linked to liquidation events, where leveraged positions are closed automatically due to margin calls.
Taha explained that many traders appear to have exited long positions as the price fell, potentially triggering a cascade of sell orders and amplifying market pressure. Net Taker Volume on Binance also turned sharply negative, nearing -$160 million, suggesting an increase in aggressive selling activity.
This trend reflects fear-driven reactions among market participants, particularly retail traders, who may have chosen to close or reverse positions amid expectations of further price declines.
Despite this wave of selling, Taha noted the possibility of a short-term rebound. A reduction in leveraged long positions combined with an increase in short exposure could create conditions for a market rebalancing or a short squeeze if selling pressure eases in the coming days.
Dormant Bitcoin Wallets Show Signs of Major Reallocation
In addition to short-term derivatives market dynamics, other analysts are pointing to broader structural changes in Bitcoin’s investor base. CryptoQuant analyst OnChainSchool highlighted that in 2024, more than 255,000 BTC previously inactive for over seven years were reactivated.
In 2025, this trend has continued, with over 215,000 BTC already moving within the first several months of the year. The average monthly movement of long-dormant coins has risen from 4,900 BTC in 2023 to over 30,000 BTC in 2025.
Transaction sizes have also grown significantly, from around 162 BTC to over 1,000 BTC per transfer. According to OnChainSchool, these patterns indicate that large-scale holders, rather than retail investors, are reallocating capital on a scale not seen in previous cycles.
The analyst suggested that beyond price fluctuations, these shifts may have long-term implications for market liquidity and Bitcoin’s future ownership distribution.
Featured image created with DALL-E, Chart from TradingView
