FameEX Hot Topics | Bitcoin Struggles at $109K While Whales Favor ETH, UK Bonds Jump

Bitcoin has struggled to find direction after tumbling from $112,500 on Friday, trading within a narrow 2.3% band. The muted price action coincided with the U.S. Labor Day holiday, which closed regulated markets and dampened liquidity. Yet, beyond seasonal trading lulls, derivatives data suggests fading conviction in the $108,000 support level, raising concerns that bearish momentum could deepen if buyers fail to step in.

Futures market signals also reflect this hesitation. The annualized premium on Bitcoin monthly futures stands at 7%, firmly within the neutral 5% to 10% range and virtually unchanged from the prior week. The last time this indicator showed bullish momentum was on August 24, when Bitcoin briefly spiked to $117,000 after Federal Reserve Chair Jerome Powell hinted at a less restrictive monetary stance. Since then, optimism has cooled, leaving markets without a strong narrative to drive new inflows.

While Bitcoin consolidates, gold has gained 2.1% since Friday, amplifying frustration among crypto traders. Bitcoin has now fallen 12.5% from its August 14 all-time high, forcing investors to question whether the decline stems from wider risk-off sentiment or crypto-specific dynamics. The liquidation of long-held Bitcoin positions by veteran investors further undermines confidence, signaling that even the most resilient holders are willing to reduce exposure amid uncertainty.

One striking example emerged on August 21, when a whale who had held Bitcoin for more than five years sold $4 billion worth through decentralized exchanges, reallocating capital into Ether. Nansen research analyst Nicolai Sondergaard described this as part of a “rotation” trend, where institutional and corporate interest is broadening to altcoins. Ethereum appears to be a major beneficiary, with rising accumulation underscoring a diversification shift within the digital asset landscape.

Beyond crypto, Britain’s 20-year government debt yields surge to 27-year highs. Investors are demanding higher yields to compensate for inflation risk or currency weakness, driving up long-term borrowing costs and threatening fiscal stability in regions like the eurozone. For Bitcoin, downside risks persist: CoinGlass estimates $390 million in leveraged longs could be liquidated if prices slip below $107,000. Still, upcoming U.S. jobs data may prove decisive—a higher unemployment rate could strengthen expectations for faster Fed rate cuts, potentially reinvigorating appetite for risk assets, including Bitcoin.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.