Crypto Markets Plunge as Bitcoin, Ether Extend Losses Amid $1.8B Liquidations

Crypto markets fell sharply overnight as bitcoin and ether extended declines, metals tumbled, and leveraged traders faced heavy liquidations across derivatives markets.

Bitcoin (BTC $76,965) slipped 2.7% since midnight UTC, while ether (ETH $2,310) dropped 3.5%, compounding Thursday’s losses. Precious metals also sold off: silver fell 20% from Thursday’s record $121 to $96, and gold dropped 11% from $5,600 to below $5,000.

U.S. equity futures softened, while the dollar index (DXY) rose 0.57%, fueled by 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 and Leverage

The market turmoil wiped out $1.8 billion in leveraged futures positions in just 24 hours. Open interest (OI) fell across most major cryptocurrencies, though DOGE saw a 2% rise, indicating shorting activity. Perpetual funding rates for BTC, ETH, XRP, and other tokens turned negative, reflecting demand for downside bets. Bitcoin’s 30-day implied volatility (BVIV) climbed to 47% from 40%, while puts on Deribit became pricier than calls. Traders favored BTC put spreads and ether put butterfly strategies, highlighting cautious sentiment.

Token Highlights

Canton’s CC token was the only top-100 cryptocurrency to gain, rising 3.35%. Privacy coins Monero (XMR $422.40), Zcash (ZEC $291.00), and Dash (DASH $43.23) fell roughly 5%. Bitcoin dominance dropped to 58.73%, signaling a shift toward speculative altcoins.

RIVER tumbled 55% since Monday, including a 25% drop over 24 hours, after an 884% rally earlier this month as traders locked in profits. Tokenized silver on HyperLiquid also faced volatility, with a $47 million long liquidated as silver fell to $96.