TLDR
- Bitcoin trades near $103,978 and Ethereum near $3,696 amid heavy liquidations.
- $5.72B in Bitcoin and Ethereum options expiry triggers massive market volatility.
- Crypto market cap drops $830B in a week as traders brace for further decline.
- Spot Bitcoin ETFs record $536M outflow, the largest single-day since August.
Bitcoin has dropped below $104,000 and Ethereum has slipped under $3,600, sending shockwaves through the crypto market. Over $5.72 billion in Bitcoin and Ethereum options are set to expire today, creating worries about more losses. Traders are preparing for high volatility as selling pressure builds and global economic concerns grow.
Sharp Market Decline and Rising Liquidations
Bitcoin has fallen over 7% in the last 24 hours, trading around $103,978. Ethereum is down to $3,696. The total crypto market value has fallen over 5% to $3.53 trillion. Data from CoinGlass shows $1.2 billion in liquidations in a day, with $600 million occurring in just four hours.
Altcoins such as BNB, XRP, SOL, DOGE, ADA, LINK, and SUI have also dropped between 8% and 20%. The total crypto market has lost about $830 billion in value in one week, raising fears of a deeper crash as traders face the large options expiry.
Banking Sector Worries Affect Investor Sentiment
Investor concerns grew after Western Alliance Bancorp and Zions Bancorporation reported bad loans linked to alleged fraud. Their stock prices fell, increasing fears about credit quality and liquidity in the U.S. banking system.
The extended U.S. government shutdown and the banking losses have hurt global market confidence. Many investors have started pulling funds out of risk assets, including cryptocurrencies, to secure liquidity amid ongoing uncertainty.
Trump Tariffs and Whale Trades Add Market Pressure
President Donald Trump’s recent announcement of 100% tariffs on China caused a strong reaction in both equity and crypto markets. Around $500 billion was wiped out from the crypto market soon after the announcement.
Reports suggest a large investor, known as the “Trump insider whale,” shorted $700 million in Bitcoin and $350 million in Ethereum before the fall, earning $200 million in profit. The same trader was seen opening short positions before Trump’s previous announcements and key Federal Reserve speeches. Traders turned cautious again this week as Trump prepared another statement on China, though he made no new tariff remarks.
Options Expiry and ETF Outflows Drive More Volatility
Today, nearly 44,000 Bitcoin options worth $4.8 billion and 251,000 Ethereum options worth $990 million will expire on Deribit. The put-call ratios are 0.83 for Bitcoin and 0.81 for Ethereum, showing balanced sentiment but rising bearish trades. The Bitcoin max pain level stands at $116,000, suggesting that price swings could continue.
At the same time, spot Bitcoin ETFs in the United States recorded $536 million in outflows, the largest since August. None of the twelve Bitcoin ETFs saw new inflows. Spot Ethereum ETFs also reported $56.88 million in outflows, while BlackRock’s ETHA gained $46.9 million in inflows.
Regulatory Investigations Add to Market Uncertainty
In Europe, French regulators have expanded anti-money laundering reviews on crypto exchanges, including Binance. The ACPR is examining compliance systems and risk controls. Binance confirmed that it is cooperating with authorities and following all EU and local laws.
These regulatory checks have added to the negative sentiment surrounding the market. With derivatives expiring and ETF withdrawals increasing, traders remain on alert for more sharp moves before the market finds stability.
