The global crypto market suffered sharp losses on Friday, with Bitcoin dipping below $84,000 and Ethereum falling below $2,800.
Moreover, this sudden pullback triggered $2 billion in liquidations and set off a rapid chain reaction across major digital assets.
Heavy Liquidations Follow Sharp Price Drop
CoinGlass data confirmed more than 392,000 traders were liquidated during the selloff. The most significant single order, a $36.78 million BTCUSD trade on Hyperliquid, highlights the intensity of the move.
Meanwhile, Bitcoin accounted for most of the damage. Traders saw $962.46 million in BTC positions erased within 24 hours, mainly from long positions, which alone totaled $931.52 million. The pressure drove Bitcoin down to $83,461, marking its lowest point in the period.
Across the broader market, long liquidations reached nearly $1.78 billion, while short liquidations were far smaller at $129.57 million.
Notably, the selloff intensified shortly after a strong US jobs report, which erased expectations for a December rate cut and contributed to $450 million in liquidations within just two hours.
Altcoins Suffer Parallel Declines
The downturn quickly spread beyond Bitcoin and Ethereum. Investors exited several major altcoins, weighing heavily on market sentiment.
Solana slid 12% to $126.52, while XRP lost more than 10%, falling to $1.92. Other impacted assets included HYPE, DOGE, TNSR, ZEC, SOL, ETH, and ASTER, showing the breadth of the selloff.
Options Expiry Amplifies Market Pressure
Selling pressure increased further as traders prepared for a significant options expiry. More than $4.2 billion in crypto options were set to expire on Friday, adding to the uncertainty.
Deribit data shows that over 39,000 BTC options, valued at $3.4 billion, were due to expire. The put-call ratio stood at 0.52, though put volume increased sharply in the past day, lifting the 24-hour ratio to 1.36. This shift indicates intensified hedging as traders attempted to protect existing positions.
The max pain price was $98,000, far above Bitcoin’s current level, showing a wide gap between open interest and market reality.
The expiry also involved more than 185,000 ETH options worth nearly $525 million. The put-call ratio was 0.72, but 24-hour activity pushed the ratio to 1.01, pointing to growing bearishness.
The max pain level of $3,200 remained well above spot prices near $2,800, reinforcing concerns around downside risk.
Analysts Warn Against Rushing to Buy the Dip
As volatility continued, 10x Research advised investors not to rush into the market. The group pointed to ongoing ETF outflows, stalled crypto listings, and shifting Wall Street incentives as key reasons for caution. It stressed that forced unwinding by ETF investors may continue to weigh on prices, making any rebound uncertain.
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