Quick BTC Reversal Reflects Profit-Taking, Not Panic

I note Bitcoin briefly hit $124,089 before sliding under $117,500, wiping out about $227M in leveraged longs. The sharp move looked headline-driven rather than a panic unwind: futures premiums held near 9% and options delta skew around 3%, both neutral.

US July PPI and slightly lower rate-cut odds provided some pressure, but the bigger immediate shock was a clear statement from the Treasury that it will not expand BTC purchases, quashing hopes tied to the March executive order.

Macro risks remain — US debt is above $37T — yet central bank balance-sheet expansion could still be a tailwind next year. For now, traders are taking profits at the highs rather than capitulating, and conviction for a sustained push to $150K is muted.