Bitcoin stabilized near $92,000 on Tuesday after a sharp, liquidation-driven sell-off on Monday that forced over $865 million in liquidations (Ed. note: liquidations exceeded $865 million). According to a report from ZeroCap, strong spot-Bitcoin ETF flows helped steady the market.
Options markets show rising demand for downside protection as traders buy puts to hedge exposure. “I think short-term volatility will dominate,” said Sean Dawson, head of research at Derive.
The current setup also drew characterisation as an “early-stage risk-on rotation”, according to the report, with ETF flows offsetting some short-term positioning.
Market participants flagged three near-term catalysts likely to sustain volatility: the escalating U.S.-Europe dispute over Greenland, delayed regulatory clarity under the CLARITY Act, and a pending Supreme Court ruling on the legality of global tariff policy. Norwegian prime minister Jonas Gahr Støre confirmed he and Finland’s president messaged President Trump urging de-escalation, adding “As regards the Nobel Peace Prize, I have clearly explained, including to President Trump, what is well known, the prize is awarded by an independent Nobel Committee, and not the Norwegian Government.”
Reports say President Trump has threatened tariffs up to 25% and pressed to assert control over Greenland, a move described as happening “one way or the other” by critics reported. “Historically, tariff threats and retaliatory measures have created significant headwinds for digital and other risk assets,” said Farzam Ehsani, CEO of VALR.
