FameEX Hot Topics | BTC Stays Near $109K Amid Whale Rotation to ETH and Rising UK Bonds

Bitcoin has remained confined within a narrow 2.3% range since its sharp drop from $112,500 on Friday. The lack of momentum is partly due to regulated markets being closed for the U.S. Labor Day holiday. However, sentiment in Bitcoin derivatives points to weakening confidence in the $108,000 support level, with traders appearing more cautious as volumes thin out.

The Bitcoin monthly futures annualized premium currently stands at 7%, comfortably within the neutral 5%–10% zone and unchanged from last week. This indicator last hinted at bullish momentum on August 24, after Federal Reserve Chair Jerome Powell’s speech boosted hopes for a softer monetary stance and pushed Bitcoin briefly to $117,000. Since then, sentiment has cooled, leaving markets searching for fresh catalysts to sustain upside momentum.

Meanwhile, gold has risen 2.1% since Friday, adding pressure on Bitcoin traders already grappling with a 12.5% retreat from the August 14 all-time high. The divergence has prompted investors to question whether Bitcoin’s slump reflects a broader retreat from risk assets or Bitcoin-specific headwinds, particularly after some long-term holders liquidated portions of their positions. This shift in behavior among seasoned investors underscores growing uncertainty around the current market structure.

On August 21, a Bitcoin whale who had held for over five years rotated $4 billion worth of BTC into Ether through decentralized exchanges. According to Nicolai Sondergaard, research analyst at Nansen, this activity highlights a broader “rotation” trend, where altcoins—especially ETH—are benefiting from expanding corporate accumulation. Such moves point to a maturing market, where capital increasingly flows across digital assets rather than concentrating solely in Bitcoin.

Adding to the cautious mood, UK 20-year bond yields hit their highest point since 1998, reflecting fears of inflation or currency depreciation. Rising yields elevate financing costs for debt issuance and rollovers, potentially spilling into the eurozone’s already fragile fiscal picture. For Bitcoin, short-term risks remain: CoinGlass estimates $390 million in leveraged longs face liquidation if BTC slips below $107,000. Still, the upcoming U.S. employment data on Friday could be pivotal—an uptick in unemployment may encourage the Fed to cut rates faster, offering a potential boost to risk assets like 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.