Is ETH Gaining as the Focus Shifts?

• Over $100M in BTC and ETH liquidations signals market volatility and leveraged positions.
• Attention shifts to Ethereum as BTC faces resistance at $100k, with sideways movement expected.
• MicroStrategy’s ongoing Bitcoin purchases could play a pivotal role in pushing BTC towards $100k.

The crypto market is changing, with Bitcoin and Ethereum experiencing liquidations. Over $100 million in BTC and ETH holdings were liquidated across exchanges within 24 hours, which demonstrates the highly leveraged nature of the market.

Despite the retracement, both assets remain above their support levels of $95k for Bitcoin and $3,200 for Ethereum. However, the market’s attention appears to be turning toward Ethereum in the short term, with projections for BTC to trade sideways until December.

Liquidations and Market Focus

Bitcoin and Ethereum together accounted for over $116 million in liquidations. Bitcoin alone recorded $78.11 million in liquidations, making up a large portion of the $490.54 million liquidated across the entire crypto market. Ethereum followed closely with $38.06 million in liquidations.

Despite the market retracement over the weekend, Bitcoin’s volatility remains relatively high. The market seems to anticipate that BTC will trade sideways until December, with attention shifting toward Ethereum in the near term.

The skewed ETH risk reversals favor frontend Calls, which indicates strong demand for Ethereum’s upside potential. In contrast, Bitcoin Call options have been more concentrated since December 27, 2024.

Read also: Crypto Liquidations Spike: Bitcoin, Ethereum, Dogecoin Traders Hit

BTC dominance fell from 62% to 59% over the past week, which suggests a slow rotation of investor interest from Bitcoin to Ethereum and other altcoins. While spot ETF inflows for Bitcoin remain strong, the large $100k sell wall presents a barrier for BTC, which prevents it from reaching the six-figure zone.

MicroStrategy’s Influence on Bitcoin’s Price

In addition to market uncertainties, MicroStrategy’s Bitcoin purchases continue to affect the company. Michael Saylor recently suggested that the company may add more BTC to its holdings, which has led to speculation that another purchase could move Bitcoin closer to its $100k target.

Saylor’s leadership through the company has received praise as a model for managing volatile markets. Despite exposure to Bitcoin holdings, Saylor maintained MicroStrategy’s stability throughout the 2022 bear market.

The company recently completed a $3 billion convertible note offering at 0% interest, which further demonstrates its commitment to Bitcoin, with a strike price of $672 per share. These notes, which are priced at a 55% premium to MicroStrategy’s current share price, will generate profits only if the company’s stock rises.