Bitcoin's recent price drop has coincided with a rise in funding rates and a decline in traders' use of leverage on futures markets. According to Glassnode analysts, the potential to sustain speculative demand is rapidly drying up.

Leverage-based traders have come under pressure: in just the last few days, approximately $940 million in futures positions were liquidated, with over $800 million of that in long positions. As a result, traders are shifting to more conservative strategies.

Meanwhile, the number of active Bitcoin addresses has dropped to a historic low — 692,000 per day, even though open interest in BTC remains near record highs. From a technical standpoint, Bitcoin is hovering just above key support levels: $97,094 on the weekly chart, with resistance at $117,058.

According to Glassnode, August and September have historically been challenging months for Bitcoin, while October and November often mark turning points for growth. However, the market remains under strong pressure for now. CryptoQuant analysts note that speculators buying BTC at the top are now realizing losses en masse.

Regulatory pressure from Russia

The Bank of Russia plans to tighten control over cryptocurrencies in 2026. A dedicated chapter in the central bank's report focuses on virtual currencies: the regulator proposes that banks limit crypto-related operations to no more than 1% of their total assets.

For Sberbank, which holds 59.6 trillion rubles, this would cap crypto operations — including investments in Bitcoin ETFs on the Moscow Exchange — at about 596 billion rubles. As early as next year, the Bank of Russia is expected to introduce new rules governing crypto lending and digital asset transactions.

Centralization, outflows, and institutional signals

Expert King pointed out that the two largest mining pools — Foundry USA and AntPool — control the majority of the network's hash rate, raising concerns about potential 51% attack risks due to centralization.

King also noted large Bitcoin outflows from major holders and criticized Michael Saylor, co-founder of MicroStrategy, for his aggressive BTC accumulation strategy.

Further pressure came from a statement by US Treasury Secretary Scott Bessent, who confirmed the government does not plan to include Bitcoin in its national reserves.

Economist Harry Dent, speaking with Robert Kiyosaki, warned of signs of a global collapse visible on the charts of Bitcoin, Nasdaq 100, and Nvidia.

Altcoin season and market shifts

According to TradingView, Bitcoin's market dominance has fallen from 66.03% (June 25) to 58.57% (August 26) — a result of the altcoin rally.

For instance, XRP hit a historic high of $3.66 in July, while the total altcoin market cap surged over $1.55 trillion, gaining more than 67% since the end of June.

At the time of writing:

• BTC was trading near $110,000 (down 2.91% for the week),
• ETH rose 8.49% to $4,530,
• XRP increased 1.10% to $2.96.

Strategic opportunities for traders

Despite the uncertainty and regulatory pressure, the current setup presents several strategic opportunities for market participants.

Risk hedging Reducing leverage and diversifying into altcoins can help manage volatility more effectively.

Technical levels Watching key levels like $97,094 (support) and $117,058 (resistance) is crucial for planning entry and exit points.

Seasonal trends Historically, October and November tend to be favorable for BTC performance — useful for early positioning.

Regulatory landscape Central bank limits may reduce domestic liquidity in Russia. Traders should consider international exchanges and ETFs as alternative tools.

In summary, despite ongoing uncertainty and regulatory pressure, the crypto market retains potential for new strategies and entry opportunities.