Crypto Markets Hit Hard as BTC, ETH, and SOL Fall Amid Surging Volatility
Staff Writer • 2025-03-11
Derive.xyz Reports Heavy Liquidations as Economic Uncertainty Fuels Bearish Sentiment The crypto market has been hit hard over the past 24 hours, with Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) experiencing sharp declines. According to Dr. Sean Dawson, Head of Research at Derive.xyz, the downturn has been driven by rising economic concerns, increased volatility, and a wave of liquidations across major assets. As investors react to mounting macroeconomic instability, the market is seeing surging bearish sentiment and a rush toward downside protection strategies. Bitcoin dropped 3.2% to $79,522, marking a significant pullback from its recent highs. Ethereum took an even larger hit, falling 6.7% to $1,886, while Solana followed with a 6.3% decline to $119. The broader economic landscape is exacerbating crypto’s downturn, with the NASDAQ sliding 4% and the latest US jobs report revealing only 150,000 new jobs added, a number that fell short of expectations. This weaker-than-expected labor data, coupled with persistent inflation concerns and rising trade tensions between the US, Mexico, and Canada, has fueled unease across global financial markets, spilling over into crypto. Liquidations Surge Past $787 Million as Leverage Traders Get Wiped Out One of the most striking indicators of market distress is the massive liquidation event that took place over the past 24 hours. Nearly $787 million in crypto positions were liquidated, with an overwhelming majority—almost $600 million—coming from long positions as leverage traders faced margin calls. Bitcoin accounted for $289 million of these liquidations, while Ethereum followed closely with $200 million. Solana saw $40 million in liquidations, and XRP added another $29 million to the total wipeout. The latest wave of liquidations reflects the increasing bearish sentiment across digital assets. Adding to market fears, Solana’s revenue has plummeted 90% from its January highs, while crypto exchange-traded products (ETPs) saw outflows of $876 million, with BTC ETFs experiencing the most significant withdrawals. These developments suggest that institutional investors may be pulling back from crypto exposure amid the growing uncertainty in both traditional and digital asset markets. Volatility Surges as BTC and ETH Implied Volatility Skyrockets The market downturn has also led to a sharp increase in implied volatility (IV), a key measure of investor uncertainty. Bitcoin’s 7-day at-the-money (ATM) implied volatility jumped from 51% to 69% within a single day, underscoring the growing unease among traders. Ethereum experienced an even greater surge, with its IV spiking from 65% to 90% as investors scrambled to hedge against further downside risk. The sudden rise in volatility suggests that traders are bracing for even greater price swings in the days ahead, particularly as macroeconomic pressures continue to mount. Derive.xyz Traders Flood the Market with Put Options to Hedge Risk As market conditions deteriorate, traders on Derive.xyz, a leading decentralized platform for onchain options and structured products, have responded by increasing their demand for downside protection. In the last 24 hours, 43% of all contracts traded on Derive.xyz were put options, reflecting a significant shift in sentiment as traders move away from speculative long positions and instead seek to hedge against further losses. The growing preference for put options suggests that many investors expect continued weakness in the near term, with some preparing for even lower price levels should macroeconomic instability persist. Market Outlook: A Pivotal Moment for Crypto as Economic Conditions Worsen With rising volatility, increasing liquidations, and a shifting macroeconomic environment, the crypto market is at a critical juncture. Traders and investors alike are watching closely to see whether digital assets can find support or if the bearish momentum will continue. As institutional outflows accelerate and derivatives traders increase their downside hedging, it is clear that confidence in a near-term recovery is fading. Over the coming weeks, macroeconomic indicators—including inflation reports, central bank policy decisions, and global trade developments—will likely play a significant role in shaping market direction. If economic instability continues to weigh on risk assets, crypto markets could face even steeper declines. However, should economic conditions stabilize, there may be an opportunity for a relief rally as traders look to re-enter the market at lower levels. About Derive.xyz Derive.xyz is a leading decentralized protocol specializing in onchain options, perpetuals, and structured financial products. With a total value locked (TVL) of $99.2 million and over $14.9 billion in trade volume, Derive.xyz provides traders with automated strategies to hedge risk, optimize returns, and navigate market volatility with greater flexibility. Co-founded by Nick Forster, Jake Fitzgerald, Mike Spain, and Dom Romanowski, the platform empowers users to build, grow, and preserve wealth through innovative onchain trading solutions. For the latest insights, follow Derive.xyz on X or visit Derive.xyz/amberdata.
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