- Bitcoin held above $70,000 as U.S. equity ETFs for the Dow Jones, S&P 500, and Nasdaq-100 slid in overnight trade.
- The crypto market’s Leverage Reset Index hit a multi-year low of 0.32, signaling a shift to spot-driven demand over leveraged speculation.
- On-chain data shows Bitcoin whales increased holdings by 8%, absorbing selling pressure from smaller wallets.
On Wednesday night, Bitcoin demonstrated remarkable resilience, holding above the $70,000 threshold while major U.S. stock indices tumbled amid escalating geopolitical tensions between the U.S. and Iran. Analysts point to a massive “leverage reset” and institutional accumulation as key drivers behind this decoupling from traditional markets.
Consequently, the cryptocurrency market cap rose 1.2% to around $2.47 trillion. Bitfinex noted the market is entering a new phase driven more by spot demand, with its Leverage Reset Index at a multi-year low of 0.32.
“Most of the speculative excess in the derivatives market has been flushed out,” the firm told Stocktwits. This suggests price discovery is now led by spot buyers rather than leveraged traders.
Meanwhile, U.S. equity ETFs like the SPDR S&P 500 ETF (SPY) fell 1.11%, and the Invesco QQQ Trust (QQQ) dropped 1.03%. Aurelie Barthere, Principal Research Analyst at Nansen, stated Bitcoin’s marginal seller is less aggressive than in equities currently.
Bitfinex analysts also highlighted crucial on-chain data. Smaller wallets have been net sellers for over a month, while whale wallets increased their Bitcoin holdings by roughly 8%. This accumulation suggests large investors are absorbing the selling pressure.
Oil prices surged over 8%, crossing $100 a barrel even after a historic strategic reserve release. The United States Oil Fund (USO) gained over 8%, trending amid extremely bullish retail sentiment.
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