Bitcoin Bulls Face Growing Market Headwinds

TheNewsCryptoPublished on 2026-05-29Last updated on 2026-05-29

Abstract

Bitcoin briefly reclaimed $72,500, triggering $342 million in long liquidations. Analysts note mounting bearish pressure ahead of a $9 billion monthly options expiry, with put options significantly outnumbering calls. On-chain data reveals a worrying shift: large "whale" balances are stagnating or declining, while "dolphin" accumulation has slowed sharply—a pattern historically linked to sustained price weakness. The long-term holder supply has reached a record high, suggesting a lack of new buyers entering the market amid deteriorating macroeconomic and geopolitical conditions.

On Thursday, Bitcoin (BTC) made its first move back over $72,500 in six weeks, leading to $342 million in liquidations for bullish leveraged bets. Investors are concerned that bears will maintain control ahead of the $9 billion monthly options expiration, even if there was a recovery bounce to $73,500.

With $3.4 billion in open interest for buys and $2.91 billion for puts, Deribit has a 70% market dominance for the May monthly options expiration. When Bitcoin fell below $78,000 on May 17, however, bulls were taken unawares.

Only $306 million worth of call options will be still in the money if Bitcoin remains below $74,000 as we approach Friday’s expiration. Put options with a strike price of $74,000 or above total $1.05 billion, providing a significant edge to pessimistic tactics.

Mounting Bearish Indications

As the holding structure continues to worsen across significant cohorts, CryptoQuant reports that more and more Bitcoin investors are seeing a reddening of their assets. A report released on Thursday by CryptoQuant said that the annual growth rate of balances for whale accounts containing 1,000 to 10,000 Bitcoin (BTC) has slowed to a negative trend, marking the fastest shrinkage this year.

Consistent monthly increase since February indicates a change from accumulation to modest distribution, similar to the bad market of 2022, it said. “Dolphins” in the Bitcoin market, who own 100 to 1,000 BTC and are mostly owned by exchange-traded funds and corporate treasuries, continue to increase each year, although at a far slower pace.

As the crypto bear market intensifies in response to growing geopolitical and macroeconomic challenges, the holding structure is deteriorating. The long-term holder supply hit a new high of 15.8 million BTC, according to CryptoQuant, but the bearish configuration indicates that new market entrants are not present.

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Related Questions

QWhat was the impact of Bitcoin's price briefly rising above $72,500 on Thursday?

AIt led to $342 million in liquidations for bullish leveraged bets.

QAccording to Deribit data, what is the market sentiment bias for the May monthly Bitcoin options expiration based on open interest?

AThe sentiment is bearish, as put options with strikes at $74,000 or above total $1.05 billion, significantly outweighing the $306 million in call options that would be in the money if Bitcoin stays below $74,000.

QWhat worrying trend is CryptoQuant reporting regarding the behavior of large Bitcoin holders (whales and dolphins)?

ACryptoQuant reports that whale balances (1,000-10,000 BTC) have stopped accumulating and are in a negative trend, while dolphin balances (100-1,000 BTC) are growing at a much slower pace. Historically, when both cohorts stall simultaneously, sustained price weakness tends to follow.

QWhat new high did Bitcoin's long-term holder supply reach, and why is this considered bearish in the current context?

AThe long-term holder supply hit a new high of 15.8 million BTC. This is considered bearish because it indicates a lack of new market entrants to absorb supply, contributing to the deteriorating holding structure.

QWhat major crypto investment firm is reportedly delaying its IPO plans according to the article's highlighted news?

AGrayscale is reportedly delaying its IPO plans amid weak crypto market conditions.

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