Bitcoin steadied after a sharp sell-off earlier this week, finding support near the $92,000 level as traders reassessed risk. Market watchers say exchange-traded fund inflows continue to support a positive long-term outlook, even as global political tensions keep volatility elevated. Recent price action suggests buyers remain active despite broader uncertainty.
In brief
- •Bitcoin holds near $92K after a sharp sell-off, with strong spot ETF inflows signaling steady institutional demand growth.
- •More than $865M in liquidations cleared excess leverage, helping prices stabilize as buyers stepped in quickly afterward.
- •Options markets show rising demand for downside protection, suggesting traders expect volatility to persist near-term ahead.
- •Geopolitical risks, including U.S.–Europe trade tensions and tariff threats, continue to weigh on crypto markets globally.
ETF Inflows Help Bitcoin Steady Despite U.S.–Europe Trade Tensions
Bitcoin has remained largely unchanged over the past 24 hours, hovering around $92,000, according to on-chain data. Monday’s decline followed rising trade tensions between the U.S. and Europe, which triggered liquidations totaling more than $865 million across crypto markets. Selling pressure eased quickly, allowing prices to recover from intraday lows.
Analysts at digital asset investment firm ZeroCap said Bitcoin’s ability to stabilize points to steady demand beneath the surface. In a Tuesday report, the firm noted that buyers stepped in quickly after the drop, suggesting much of the macro-driven fear had already been priced in.
Analysts compared current conditions to an early phase of a shift back toward risk assets, supported by consistent inflows into spot Bitcoin ETFs.
Spot ETF demand has been a key factor in recent weeks. Net inflows reached their highest weekly level in three months, offering structural support even as short-term traders reduced exposure. Longer-term investors appear less sensitive to daily price swings, focusing instead on broader adoption and regulated access to Bitcoin.
Several forces are shaping current market behavior:
- •Spot Bitcoin ETFs continue to attract steady capital from institutional investors.
- •Liquidations earlier in the week cleared excess leverage from the market.
- •Options data shows rising demand for downside protection.
- •Trade disputes between the U.S. and Europe are weighing on risk sentiment.
- •Regulatory and legal uncertainty in the U.S. remains unresolved.
Not all analysts share the same level of confidence. Sean Dawson, head of research at on-chain options platform Derive, warned that short-term volatility is likely to persist. Dawson pointed to a falling 25-delta skew, which signals increased demand for put options as investors hedge against further downside.
Tariff Threats and Arctic Tensions Weigh on Risk Assets, Including Crypto
Macro and geopolitical risks remain central to near-term market moves. One flashpoint involves growing friction between the U.S. and Europe over Greenland. Tensions rose after U.S. President Donald Trump communicated with Norwegian Prime Minister Jonas Gahr Støre.
This prompted renewed debate over sovereignty and security in the Arctic. Norway has reiterated that Greenland belongs to Denmark and confirmed its continued support for NATO.
Trump has also warned of potential tariffs of up to 25% on certain European imports, adding pressure to global markets. According to Farzam Ehsani, CEO of crypto trading platform VALR, prolonged trade disputes have historically weighed on digital assets like Bitcoin.
He said the current pricing reflects concerns that prolonged tensions could strain trade relations. More so, it could keep risk assets under pressure, even as some on-chain indicators show early signs of stabilization.