Bitcoin and Ether Slide 7% Amid Rising Market Fear and Mounting Liquidations

Crypto prices sank further as a surge in derivatives liquidations collided with worsening macro uncertainty, prompting traders to brace for additional losses if bitcoin fails to reclaim key technical levels.

Bitcoin (BTC) slid more than 7% in the past 24 hours to trade near $70,000, while ether (ETH) fell to around $2,095, extending a broad sell-off across digital assets. Sentiment deteriorated rapidly, with the Crypto Fear and Greed Index plunging to 11 — its lowest reading of the year — underscoring extreme risk aversion.

“Bitcoin is trading back in a zone that capped prices for much of 2024, which naturally attracts dip buyers,” said Alex Kuptsikevich, chief market analyst at FxPro. Still, he warned that similar market phases have ended poorly in the past. “In May 2022, a comparable wave of selling led to weeks of sideways trading before another leg lower,” he said.

According to Bitget’s chief market analyst, aggressive selling in derivatives markets magnified losses as leveraged positions were unwound. At the same time, geopolitical tensions and uncertainty around global interest rates have driven investors away from risk-sensitive assets, weighing heavily on tokens such as XRP.

Pressure from traditional markets added to the caution. Oil prices remained volatile as traders priced in the risk of escalating U.S.–Iran tensions, a development that could stoke inflation and further challenge the bullish case for crypto.

Derivatives positioning

Capital continued to exit crypto futures markets, with cumulative notional open interest sliding to about $103 billion. Margin stress triggered widespread forced liquidations, with more than $800 million in leveraged positions wiped out over the past day. Liquidations may accelerate after bitcoin dipped below the closely watched $70,000 threshold.

Even so, longer-dated sentiment has not fully capitulated. Ninety-day bitcoin futures continue to trade at a premium to spot prices — a condition that historically fades near major market bottoms. Open interest rose in select tokens including XAUT, LINK, TRX and PEPE, bucking the broader trend.

Perpetual funding rates for several altcoins turned negative, signaling growing demand for short exposure. Options markets reflected similar caution: on Deribit, near-term bitcoin and ether put options commanded premiums of more than 10 points over calls. Large over-the-counter trades in bitcoin continued to favor bearish strategies such as put spreads.

Token talk

Altcoins generally followed bitcoin lower during Asia and European trading hours. Privacy-focused tokens monero (XMR) and zcash (ZEC) each dropped as much as 7%.

XRP suffered steeper losses, sliding more than 10% overnight as roughly $30 million in liquidations hit the market. The sell-off intensified around 09:00 UTC, when prices fell from $1.44 to $1.35.

Derivatives exchange token MYX stood out as a rare gainer, rising 4% over the past 24 hours and extending its year-to-date advance to 56%.

The bitcoin-heavy CoinDesk 20 (CD20) Index declined 8.34%, lagging the altcoin-focused CoinDesk 80 (CD80), which fell 5.92%. Several altcoins are now forming deep bearish structures, marked by successive lower highs and lower lows — patterns not seen since the 2022 crypto winter.