Bitcoin News Today: Bitcoin drops 4% below $115,000 as derivatives expiry erases $390 million 14% of open interest

Bitcoin derivatives data has cast doubt on the resilience of the $115,000 support level following a 4% price drop in late July, marking the first decline below this threshold in two weeks. The selloff coincided with the monthly derivatives expiry, which erased $390 million in futures contracts—14% of open interest—raising concerns about market stability. Despite the decline, Bitcoin’s 2-month futures premium remained within a neutral 5%-10% range, suggesting no clear shift in investor sentiment [1].

The options market, however, revealed mixed signals. The 25% delta skew—a metric reflecting demand for put options relative to calls—surged to 10% during the downturn, a level last seen four months ago amid heightened volatility. This spike indicated temporary fear among traders, but the skew quickly retreated to a balanced 1% level, signaling that large players and market makers were hedging risks for both upward and downward moves [1]. Meanwhile, derivatives platforms reported $140 million in liquidations as the price slid from $118,400 to $115,100, highlighting fragility in leveraged long positions [2].

Analysts note that the $115,000 level is critical not only for technical reasons but also as a psychological battleground. CoinGlass data shows a concentration of bids at $114,500, suggesting defensive positioning, yet bearish pressure persists with asks clustering above $118,500. Further declines could test deeper support around $105,000–$112,000, where long-term holders are estimated to hold 348,000 BTC [3]. However, the absence of panic buying near $116,000, coupled with stablecoin activity showing only marginal fear, indicates a lack of broad-based capitulation [1].

The broader market context includes ETF outflows exceeding $285 million in recent weeks, softening the momentum that had driven Bitcoin toward its July highs. While some models predict a rebound to $120,000 if ETF inflows stabilize, others warn of deeper corrections should the $115,000 level fail. This uncertainty has led traders to scale back leveraged positions and prioritize hedging strategies. Netizen Weekly’s analysis underscores the pivotal role of the $98,000 support zone, where renewed buying could emerge if institutional buyers step in [4].

Derivatives data reflects this fragmented outlook. Funding rates for perpetual contracts have fluctuated sharply, illustrating the tug-of-war between bullish and bearish forces. Despite defensive bids at $114,500, the recent liquidations suggest insufficient capital to reverse the broader trend. Traders remain cautious, with positioning skewed toward short-term liquidity management until directional clarity emerges.

The implications for Bitcoin’s price trajectory remain uncertain. While the $115,000 level has not yet broken decisively, the mixed signals from derivatives markets highlight the fragility of current positioning. Whether institutional or retail investors can stabilize this threshold will likely determine the next phase of Bitcoin’s movement, particularly as global trade tensions and regulatory developments continue to shape risk sentiment.

Source:

[1] [BTC Dives Below $115K, $140M in Longs Liquidated](https://cryptoadventure.com/bitcoin-whiplash-btc-dives-below-115k-140m-in-longs-liquidated/)

[2] [Crypto Newsletter, 24/7 Real-Time Market Updates, Global](https://www.coinglass.com/newsflash)

[3] [Netizen Weekly | Bitcoin Market Update 23](https://netizencapital.substack.com/p/netizen-weekly-bitcoin-market-update-82e)

[4] [Ethereum Surges Past Bitcoin: ETH Volume Dominance](https://www.btcc.com/en-IN/square/Coingape/689396)