Institutional movements add pressure
The fall in the cryptocurrency market is largely due to institutional activity and upcoming derivatives expirations. The $9.4 billion in Bitcoin options and $1.3 billion in Ethereum options are creating volatility as traders adjust their positions, leading to widespread liquidations. Notably, Bitcoin ETFs saw a daily net outflow of $438 million. While BlackRock’s IBIT saw an inflow of $267 million, Bitwise BTC lost $280 million, revealing contrasting views in the market.
The sector saw liquidations worth $489 million, impacting over 186,000 traders in just 24 hours. As a result, the market capitalization of the crypto sector fell by $16 billion and now hovers around $3.27 trillion.
Altcoins React Amid Volatility
Bitcoin’s 3.72% decline weighed heavily on the broader market, sending major altcoins like Solana (-6.19%) and XRP (-1.48%) lower. Ethereum, however, showed resilience, gaining 1.09% thanks to investor diversification. The uncertainty hit smaller tokens harder, with The Sandbox plunging 16.80%, placing it as the first loser of the day.
Explore our in-depth Bitcoin price prediction to analyze whether BTC can break the psychological barrier of $100,000 soon.
Top performers amid chaos
Despite the slowdown, some tokens surged, demonstrating commercial interest in decentralized finance (DeFi). Lido DAO (+7.67%), Uniswap (+6.07%), and Arbitrum (+5.34%) led the gainers, signaling pockets of optimism.
FAQs
The market decline is attributed to upcoming Bitcoin and Ethereum options expirations, widespread liquidations, and institutional sentiment reflected in ETF outflows.
More than $489 million in liquidations have been recorded, affecting more than 186,000 merchants.
Yes, Lido DAO (+7.67%), Uniswap (+6.07%) and Arbitrum (+5.34%) were the biggest gainers despite the market slowdown.
The Fear and Greed Index is at 84, which indicates Extreme greed, even amid market volatility.
