After Surging Past $107,000 to a Four-Month High and Wiping Out More Than $600 Million in Crypto Derivatives Positions

After surging past $107,000 to a four-month high and wiping out more than $600 million in crypto derivatives positions, the Bitcoin quickly dropped to about $103,000.

Bitcoin quickly dropped to about $103,000 on Monday after surging past $107,000 to a four-month high and wiping out more than $600 million in crypto derivatives positions.

The token hit its highest level since late January early on Monday, just short of breaking its all-time high of $109,228. Despite gyrating wildly on Monday, Bitcoin has now stabilized at around $105,000.

Bitcoin's price surged over $2,500 in less than an hour during late Sunday trading, driven by algorithmic buying at critical technical levels and very low weekend liquidity. It looks like the surge set off the traditional short squeeze, which is when sellers quickly book profits or try to avoid losses.

Macro Shifts & Wider Adoption Into Mainstream Boost Bitcoin

Thanks to rising hopes that the world's two biggest economies will be able to resolve their trade spat, Bitcoin's value has increased by nearly 11% so far this month. Several other drivers also contributed to this increase.

Investors remained wary of a tariff-induced acceleration in inflation, even if last week's muted US inflation prints strengthened prospects of a Federal Reserve rate cut this year. Bitcoin and other alternative assets become more appealing when the US currency weakens due to lower inflation and the possibility of lowered interest rates.

Investments by large institutions have also been crucial; for example, Strategy bought 13,390 BTC for $1.34 billion, demonstrating the increasing interest of corporations in Bitcoin as a serious strategic asset.

Investors are looking for new ways to store their wealth due to macroeconomic risks, such as Moody's decision to reduce the US national credit rating.

“A head-scratching metric has dominated crypto discussions this week: retail investors are net sellers of BTC in 2025, while institutions are scooping it up,” said Ira Auerbach, head of Tandem at Offchain Labs, the team behind Arbitrum.

“For veterans of this space, this reversal is truly odd and potentially lays the groundwork for a new era of bullish Bitcoin price action,” Auerbach added.

Recent advances in Bitcoin's value have been fueled by a confluence of factors, including geopolitical changes, institutional acceptance, and the belief that it can protect against economic volatility.

The cryptocurrency offerings of major exchanges were also growing. Coinbase Global was the first company involved with digital assets to be included in the S&P 500 index.

On Friday, the Nasdaq saw the debut of Mike Novogratz's Galaxy Digital, concluding a significant week for the public markets in the cryptocurrency sector. Retail brokerage eToro has also made its public debut.

On Monday, Bitcoin ETFs experienced a surge in activity, absorbing $667 million in inflows, marking its largest daily inflow figure in weeks. Ethereum ETFs also saw positive movement, with $14 million in inflows.

“We view the recent strength in the price of ether as being driven more by organic demand than institutional flows—a potential sign of rising retail activity and decoupling performance between bitcoin and altcoins,” BRN analyst Valentin Fournier stated in a note.

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Singapore's Bitcoin Candidate Jeremy Tan on Disrupting Politics & Finance

This week we have a special guest, Jeremy Tan, the independent candidate for Mountbatten SMC who garnered a surprising 36% of the vote in Singapore's general election by centering his campaign on, among other things, Bitcoin adoption. Jeremy discusses his motivations for bringing Bitcoin into the political arena, highlighting the need for Singapore to consider it as a hedge against US dollar instability, and addresses the Monetary Authority of Singapore's (MAS) cautious stance on crypto, suggesting a disconnect between the official narrative and behind-the-scenes activity.

Blockcast is hosted by Head of APAC at Ledger, Takatoshi Shibayama. Previous episodes of Blockcast can be found here, with guests like Alex Ryvkin (Rho), Hassan Ahmed (Coinbase), Sota Watanabe (Startale), Nic Young (Oh), Jacob Phillips (Lombard), Chris Yu (SignalPlus), Kathy Zhu (Mezo), Jess Zeng (Mantle), Samar Sen (Talos), Jason Choi (Tangent), Lasanka Perera (Independent Reserve), Mark Rydon (Aethir), Luca Prosperi (M^0), Charles Hoskinson (Cardano), and Yat Siu (Animoca Brands) on recent shows.