The Week That Was

Executive SummaryThe Bitcoin market has navigated a period of intense volatility, defined by a severe, derivatives-led price correction that fundamentally reset its technical structure and purged speculative excess. The initial catalyst was a cascade of forced liquidations, erasing over $1.7 billion in leveraged long positions and breaking the critical $115,000 support level. This internal market de-risking was compounded by the gravitational pull of a historic $22.6 billion options expiry on September 26, which centered on a “max pain” price of approximately $110,000, and later exacerbated by mounting macroeconomic fears of a U.S. government shutdown and persistent inflation.This short-term technical breakdown, however, occurred against a backdrop of accelerating long-term fundamental adoption and structural maturation. The market has now entered a new phase of price discovery post-expiry. The primary conflict is between the weakened short-term technical posture and the strengthening long-term fundamental case, with the outcome likely to be determined by the resilience of institutional demand in the face of significant macroeconomic headwinds.1. The Market Correction: A Derivatives-Driven DeleveragingThe defining event of the period was a violent price correction driven by the internal structure of the derivatives market. This event was not triggered by a fundamental flaw in the network but by an unwinding of excessive speculative leverage.The Price Cascade and Mass LiquidationThe correction began with a decisive break below the critical psychological and technical support level of $115,000. This breach acted as a catalyst for a cascade of forced liquidations across the cryptocurrency market.• Initial Event (Sep 22): Over a 24-hour period, approximately $1.7 billion in leveraged positions were liquidated. The selling was overwhelmingly directional, with long positions accounting for a staggering $1.62 billion (over 95%) of the total. On-chain data confirmed a significant cluster of liquidation levels between $113,000 and $114,000.• Pre-Expiry Flush (Sep 26): Ahead of the major options expiry, another wave of intense selling pressure triggered a second deleveraging event, wiping out nearly $1 billion in leveraged long positions over 24 hours and driving the Bitcoin price to a four-week low of approximately $108,713.This “great unwind” structurally reset the derivatives landscape by purging speculative froth and removing over-leveraged market participants, creating a more stable, albeit lower-priced, foundation.The “Triple Witching” Options ExpiryThe market’s price action was heavily influenced by the record-breaking options expiry on Friday, September 26.• Historic Scale: Characterized as a “Triple Witching” event, it marked the simultaneous expiry of weekly, monthly, and quarterly contracts. The total notional value exceeded $22.6 billion, making it one of the largest such events in history.• Gravitational Pull of “Max Pain”: The calculated “max pain” price for this expiry was centered around the $110,000 level. This price point, at which the maximum number of options contracts expire worthless, created a financial incentive for large market makers to guide or suppress the spot price toward this level, acting as a significant headwind against any recovery leading up to the expiry.Technical Landscape ResetThe sharp price decline fundamentally redrew the market’s technical structure, flipping previous support levels into new resistance ceilings.A bearish “death cross” pattern, where the 50-day Simple Moving Average (SMA) threatens to cross below the 100-day SMA, has also emerged as a potential technical concern on the daily chart.2. The Institutional Tug-of-War: Strategic Buying vs. Tactical RetreatThe market correction revealed a complex dynamic among different classes of large-scale investors, with long-term corporate accumulators absorbing some of the selling pressure from tactical ETF holders and profit-taking by on-chain veterans.Corporate Treasury Conviction and EvolutionDespite the price volatility, several publicly traded companies continued their strategic Bitcoin accumulation, showcasing an evolution of the corporate treasury thesis.• Strive, Inc. & Semler Scientific, Inc.: Announced an all-stock merger to create a scaled, publicly-traded “Bitcoin acquisition platform” designed to use sophisticated financial strategies to potentially “outperform Bitcoin.” Strive concurrently purchased an additional 5,816 BTC for $675 million. The combined entity is expected to hold over 10,900 BTC.• Metaplanet Inc.: The Japanese firm executed its largest single purchase, acquiring 5,419 BTC for approximately $632.5 million, bringing its total holdings to 25,555 BTC and ranking it among the top five public corporate holders.• MicroStrategy: Continued its accumulation strategy, acquiring an additional 850 BTC for $100 million, bringing its total holdings to ...