- Bitcoin fell 5% as gold and silver dropped sharply, but leveraged traders fueled $300M in rapid liquidations.
- Binance open interest hit 123,500 BTC, showing investors are returning to risk despite past market shocks.
- aSOPR shows holders taking profits earlier, hinting at weakening conviction and potential short-term rebounds.
Bitcoin confronted a sharp market shakeup this week as global sell-offs rattled multiple asset classes. Gold dropped roughly 8%, silver slid about 12%, while Bitcoin experienced a milder pullback near 5%.
CryptoQuant analyst Darkfost said Bitcoin’s drop came as Microsoft shares tumbled after AI investment news. This triggered a ripple effect, hitting stocks, gold, silver, and crypto alike. Even though Bitcoin only fell about 5%, traders lost nearly $300 million in long positions in just a few hours, showing how quickly the market can swing.
On Binance, open interest has surged back to pre-October 10 levels, reaching 123,500 BTC. This is a 31% increase from the 93,600 BTC observed before the October liquidity event. Darkfost emphasized that “this gradually reflects the return of risk appetite among investors.”
Hyperliquid saw the largest single liquidation, wiping out $87.1 million, while Binance recorded roughly $30 million. Hence, traders are still eager for leveraged exposure, feeding sudden volatility bursts and liquidation cascades.
aSOPR Signals Investor Behavior and Market Stress
Meanwhile, CryptoQuant analyst MorenoDV_ highlighted insights from the adjusted SOPR (aSOPR) metric. Since early 2024, Bitcoin climbed from $40K to over $100K, yet aSOPR consistently formed lower highs and lower lows. This pattern shows holders are taking profits earlier during each rally.
MorenoDV_ explained, “Each time Bitcoin made a new price peak, holders were taking profits progressively earlier, showing decreasing conviction with each rally.” Consequently, the descending channel of aSOPR now serves as both a sentiment gauge and timing tool.
Bitcoin is currently testing the lower boundary of this channel amid extreme fear, with roughly a third of supply underwater. If support fails and bearish momentum intensifies, the market could enter capitulation. Investors must prioritize risk management, keeping position sizes aligned with current uncertainty.
