Crypto Markets Experience $900 Million in Liquidations Amid Price Drop
Crypto markets experienced nearly $900 million in liquidations, primarily affecting overleveraged positions following a correction in BTC and ETH.
- Liquidations included $320 million in ETH and $277 million in BTC.
- Combined losses from Solana's SOL, XRP, and Dogecoin reached $90 million.
- ETH declined from $4,700 to around $4,400, while BTC fell to $110,200.
- Volatility surged: BTC's daily volatility increased from 15% to 38%, ETH's from 41% to 70%.
- Options markets showed a preference for puts, indicating defensive positioning.
- Implied odds for BTC to hit $100,000 by September-end rose to 35%, ETH's chance of retesting $4,000 increased to 55%.
- CME data indicated record shorts in ETH futures, likely due to hedging activities.
- Traders anticipate continued volatility ahead of upcoming GDP and unemployment data releases.
Positioning appears more stretched in ETH compared to BTC, suggesting potential for ongoing market fluctuations.