Bitcoin is under renewed pressure as whale activity reveals a resurgence of high-leverage short positions on both Bitcoin and Ethereum. The move comes as a broader selloff in gold and silver spills over into crypto markets, with Bitcoin falling in tandem with the precious metals it was once expected to rival.
According to NewsBTC, key on-chain levels are now in focus as leveraged short positioning builds. The re-opening of these positions suggests large traders are betting on further downside, adding to selling pressure in an already fragile market. Analysts are watching support zones closely for signs of a breakout or liquidation cascade.
The correlation between Bitcoin and gold is reasserting itself as the Federal Reserve maintains a hawkish stance. CoinDesk reports that the traditional hedge trade—buying precious metals and Bitcoin against a weakening dollar—is rapidly unwinding as interest rate expectations shift. Bitcoin is falling alongside gold and silver, undermining the narrative of crypto as a standalone safe haven.
Bitcoin’s market cap dominance remains elevated near 54%, reflecting its relative strength compared to altcoins, but the broader crypto market is bleeding value. The selloff comes despite recent institutional inflows, highlighting the tension between macro headwinds and long-term adoption trends. Ethereum is also under pressure, tracking Bitcoin lower after a brief period of outperformance.
Some traders argue that the whale shorts are a contrarian signal—large positions built at key resistance levels often precede sharp reversals. However, with macro forces aligning against risk assets, the caveat is that these leveraged bets could trigger forced liquidations on any sudden price spike, adding to volatility rather than signaling a clear direction.