Bitcoin (BTC) climbed above $82,000 this week for the first time since late January, fueled by a resurgence in institutional demand before a wave of volatility erased some gains and triggered widespread liquidations. The leading cryptocurrency reported a 13% gain over the last month, according to CoinGecko data as of May 9.
The move was followed by a sharp reversal that saw nearly $300 million in leveraged futures positions liquidated in 24 hours, according to data from Coinglass. Long traders bore the majority of the losses after the market pulled back from recent highs, showing the impact of deleveraging after the initial burst of momentum.
In a 24-hour snapshot, liquidations across major tokens totaled $91.55 million, with Bitcoin accounting for $31.84 million and Ethereum for $30.36 million. In contrast, Toncoin (TON) saw an unusual $29.35 million in liquidations, of which 97.74% were short positions, indicating extreme pressure on traders betting against the asset. The shift was also visible in the options market, where demand grew for put options at the $80,000, $75,000, and $60,000 strikes.
The key question is whether the initial move above $80,000 represents a confirmed breakout or a temporary peak. A failure to hold above the recent support structure around $75,000 would cancel the pattern of higher lows established since early April and could signal a return to the previous trading range.
Institutional Flows Return
The rally was underpinned by strong institutional buying. US-based spot Bitcoin ETFs recorded $2.44 billion in net inflows during April, marking the strongest monthly figure since October 2025. This renewed interest from institutional players helped push Bitcoin above its 200-day exponential moving average, a key technical level watched by traders, which currently sits around $82,100.
The market is also weighing commentary from figures like CNBC host Jim Cramer, who recently turned bullish on US stocks. While a risk-on mood in equities often supports crypto, some traders view his optimism as a contrarian indicator, colloquially known as the "inverse Cramer."
Derivatives Market Resets
The recent price drop led to a clear reset in derivatives markets. Cumulative open interest across all exchanges fell by more than 1.5% to $131.5 billion as traders closed positions.
While open interest for most major tokens like Bitcoin and Ether declined, Toncoin stood out with a 6% increase, suggesting fresh capital was still entering its derivatives market despite the broader deleveraging. The contrast highlights a divided market where some altcoins are attracting speculative interest while Bitcoin and Ethereum positioning is reduced. The annualized 30-day implied volatility for Bitcoin remains near 40%, its lowest since late January, suggesting the market expects relative calm ahead of the next major economic data.
This article is for informational purposes only and does not constitute investment advice.
