- More than $747 million in leveraged crypto positions were liquidated across global exchanges in the past 24 hours.
- Open interest in options is rapidly increasing and is now close to matching futures levels, according to Glassnode.
- Bitcoin remained stable near $107,900 after weekend price swings that saw highs above $113,800.
- CNBC’s Jim Cramer issued a warning about increased speculative activity in the cryptocurrency market.
- The total cryptocurrency market capitalization dropped 0.8% to $3.7 trillion, with leading coins like Ethereum and Dogecoin experiencing notable declines.
Liquidations totaling over $747 million were recorded in the crypto market within a single day, following sharp price movements over the weekend. Bitcoin traded steadily near $107,900 on Monday morning after previously reaching $113,800 on Sunday. The overall market capitalization decreased by 0.8%, bringing the collective value of cryptocurrencies to around $3.7 trillion.
According to data from CoinGlass, approximately $445 million of the liquidations came from long positions, while $305 million originated from short bets. Analytics provider Glassnode highlighted a significant change in the market, noting that open interest in options contracts is quickly approaching parity with futures. This indicates a shift toward defined-risk and volatility strategies, as explained by Glassnode, where options trading is beginning to play a more essential role in setting prices.
Retail sentiment around Bitcoin improved to a ‘neutral’ stance over the past day, coinciding with heightened social media discussions. Despite this, major cryptocurrencies saw downward movement. Ethereum fell 1.4%, while Dogecoin dropped 1.5%. Cardano and XRP (Ripple’s token) each lost over 1%, and Binance Coin and Solana registered smaller declines.
High-profile market figures weighed in on the current environment. Jim Cramer, host of CNBC’s Mad Money, warned traders: “Crypto due for a push today. We are in 2000 territory on specs. It is where the cockroaches are,” he posted on X (formerly Twitter). Cramer added, “We MUST focus on this before people really get hurt. TRIM.” (See full post here.)
On the equities side, crypto-associated companies were not immune to the losses. Shares of MicroStrategy (the largest corporate Bitcoin holder) slipped 3.1% in pre-market trading. Ethereum-focused Bitmine Immersion Technologies shares dropped over 2.6%, and Coinbase fell 2.1%.
Glassnode’s report suggests options activity could have a greater influence on the crypto market’s price movement going forward, as investors embrace strategies focused on risk management during periods of high volatility (source).
