Crypto Markets Plunge as Bitcoin, Ether Extend Losses and $1.8B Liquidations Hit
Crypto markets fell sharply overnight as bitcoin and ether extended their declines, metals tumbled, and leveraged traders faced heavy liquidations across derivatives markets.
Bitcoin (BTC $76,965) dropped 2.7% since midnight UTC, while ether (ETH $2,310) fell 3.5%, compounding Thursday’s losses. Precious metals also suffered: silver fell 20% from Thursday’s record $121 to $96, and gold slid 11% from $5,600 to below $5,000.
U.S. equity futures were weaker, and the dollar index (DXY) gained 0.57%, driven by growing expectations that Kevin Warsh may become the next Federal Reserve chair.
The selloff pushed bitcoin to its lowest level since November and triggered $1.8 billion in liquidations across crypto markets. The CoinDesk 20 Index (CD20) is down 6.6% year-to-date, while the altcoin-heavy CoinDesk 80 (CD80) has lost 2.28%.
Derivatives Activity
The market turbulence wiped out $1.8 billion in leveraged futures positions over 24 hours. Open interest (OI) in major crypto futures, including bitcoin and ether, fell, though DOGE saw a 2% increase as traders shorted the dip. Perpetual funding rates for BTC, ETH, XRP, and other tokens turned negative, reflecting growing demand for downside bets.
Bitcoin’s 30-day implied volatility (BVIV) rose to 47% from 40%, while Deribit data showed puts becoming pricier than calls, signaling increased demand for downside protection. Traders executed BTC put spreads and ether put butterfly strategies, reflecting cautious sentiment.
Token Highlights
Canton’s CC token was the only top-100 crypto in the green, rising 3.35%. Privacy coins Monero (XMR $422.40), Zcash (ZEC $291.00), and Dash (DASH $43.23) all fell roughly 5%. Bitcoin dominance dipped to 58.73%, suggesting investors are shifting toward speculative altcoins.
One such altcoin, RIVER, fell 55% since Monday, including a 25% drop over 24 hours, following an 884% rally earlier this month as traders locked in profits. On HyperLiquid, tokenized silver saw a $47 million long position liquidated after silver prices dropped to $96.
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