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Bitcoin Rebounds Toward $90K Amid Ongoing Liquidations and Altcoin Slump
The cryptocurrency market is seeing Bitcoin (BTC) reclaim focus amid ongoing volatility, while many alternative tokens continue to struggle, according to recent analysis from crypto liquidity provider Wintermute and current market price movements. Last week, BTC fell below $85,000 and Ethereum (ETH) dropped under $3,000, driven by heightened selling pressure.
Liquidations Surge Amid Volatile Market
The market experienced a wave of liquidations, with nearly $600 million on Monday and around $400 million on Wednesday and Thursday, as gains were quickly sold in an unpredictable environment. By the end of the week, the market stabilized, allowing BTC to gradually climb toward $90,000, demonstrating the resilience of leading cryptocurrencies.
Altcoins Under Pressure
Wintermute highlighted that altcoins remain on the downside, weighed down by large token supply overhangs and a busy token unlock schedule. In a post on X, the firm noted that Bitcoin dominance increased, reinforcing a trend seen in the second half of the year. Despite this, spot buyers continue to anchor the majors, while derivatives markets have become essential for price discovery, enabling net purchases of BTC and ETH even during leveraged liquidations.
Market Dynamics and Year-End Outlook
Funding and basis levels remained tight for major cryptocurrencies, though options markets reflect a mix of scenarios, from downside risks to mid-$80,000 levels to potential rebounds. Traditional finance continues to move into crypto, showing long-term commitment despite market turbulence. As the year-end and holiday season approach, trading is expected to remain range-bound and selective, with liquidity staying relatively low.
Wintermute’s Current Holdings
Earlier reports revealed that Wintermute offloaded large cryptocurrency holdings, including BTC and ETH, in late November and early December, moving an estimated $1.5 billion in BTC to centralized venues. Today, the firm holds approximately $416 million on-chain, including 778,515 SOL tokens, 340 BTC, and over $45 million in USDC, spread across multiple major cryptocurrencies.
