Bitcoin’s $100K Showdown: Wall Street’s Bets Collide With Crypto’s Liquidity Abyss

Institutional money floods in—hedge funds pile into BTC ETFs like it’s 2021 meme-stock mania. Meanwhile, derivatives markets yawn with $10B+ daily liquidations, swallowing volatility whole.

The paradox? Whale wallets sit stuffed with dormant coins while leveraged traders play musical chairs. ’Digital gold’ now trades like a penny stock pumped by macro tourists and algos.

Here’s the kicker: every ’new paradigm’ price prediction assumes traditional finance plays by crypto rules. Spoiler—they never do. When the music stops, someone’s left holding a nine-figure bag of unrealized losses. Probably you.

Source: CoinGlass

While higher ETF inflow supported higher prices, statistics indicated price dropoffs if the momentum fades.

The price of BTC may rise if the inflow kept growing. However, a decrease in activity could weaken BTC prices due to its optimistic trend.

Key levels and price analysis

Bitcoin’s charts showed strong gains followed by tightly compressed trading. Initially, price consolidated between $83K and $86K. When the price broke out of the range, consolidation occurred between $93K and $96K.

As a result of the pattern mentioned, the next upward MOVE caused the price to consolidate between $101K and $105K.

Source: TradingView

Given these factors, it is prudent to wait for BTC to move outside the $101K and $105K range. If prices break above $105K, it might mean the market will continue to rise and could reach new records.

On the other hand, if the price goes below $101K, it could be a bearish trend that tries to reach the lower end of support.

On this level, BTC being ranged results in the fact that things are equal, and the direction it breaks out could show the first signs of its short-term movement.

BTC OTC and perpetual liquidity levels

On the sell side, the data showed that Bitcoin’s liquidity dropped significantly on all types of platforms since achieving its maximum.

With the number of announced sales decreasing fast, it seemed that liquid supply of bitcoin was reducing quickly.

Source: X

A lack of Bitcoins on the market could, in fact, lead to a surge in pricing, and this could happen in 2025 as long as demand does not fall.

Meanwhile, the amount of fresh liquidation across BTC perpetual contracts pointed out several liquidation points for positions with less leverage, up to the $101,000 level.

There were some high leverage longs at $99,459, $98,669, medium leverage longs at $100,522, and $100,033.

When it comes to short positions, low leverage liquidations were evident at and above the current price, for instance at $105,764 but also at $105,498.

Source: TradingView

It pointed out that there were “more high Leveraged liquidity levels found below $101K.” All in all, this pointed to the supply of BTC being squeezed, which could cause an increase in prices.

Even so, if Bitcoin prices fall toward the major liquidation levels below $101,000, much selling may result, causing the price to fall even more before any rise due to a supply shock can happen.