Crypto Chaos: Bitcoin Dips, Ether Sinks as Markets Panic!

by

Markets

What to know:

  • The market’s depth was as thin as a hound’s hide, leaving order books as fragile as a snowflake in a hurricane. 🧗‍♂️🪨
  • INJ, NEAR, ETHFI, APT, and SUI fell 16%-18% in 24 hours, proving that even the most steadfast tokens can’t outwit a liquidity crisis. 💸

The crypto market plunged towards April’s lows on Friday, which is like a man falling off a cliff and landing on a soft bed of disappointment. Bitcoin and ether both dropped about 10% in 24 hours, as if they’d finally realized they’re not the main event. 🐶

BTC was recently trading around $82,200 with ETH near $2,700. The altcoin market fared worse than the major cryptocurrencies, as if they’d been caught stealing from the cookie jar. Several tokens slumped as much as 20%, which is more than your uncle’s savings account after a bad investment. 🍪

The sell-off was in part due to the liquidity crisis that spawned during October’s sell-off and liquidation event. Recent CoinDesk Research revealed that liquidity was still hollow, like a hollowed-out pumpkin on Halloween. 🎃

It wasn’t just crypto that felt the squeeze. U.S. equities have also been tumbling, and the Nasdaq 100 now trades 9.4% below its Oct. 31 record high. It’s like watching a circus act where the trapeze is missing. 🎪

Derivatives Positioning

  • Bitcoin’s 30-day implied volatility index, BVIV, has topped 64%, making it more volatile than a caffeinated squirrel. 🐿️
  • The ether volatility index has jumped to 87%, the highest since April 10. It’s as if the market’s nerves are made of spaghetti. 🍝
  • Both moves indicate increasing uncertainty in the market and growing demand for options as spot prices slide. It’s like buying a life jacket in a sinking ship. 🚤
  • BTC’s open interest (OI) crashed to 700K BTC from 752K BTC in a day as the price slide shook out bullish leverage bets. Some traders are “knife catching” – or buying futures in a falling market, which is likened to catching a falling knife. 🗡️
  • OI has collapsed across the board in the past 24 hours, with DOGE, ENA, ASTER seeing drops in excess of 15%. It’s like watching a balloon deflate in slow motion. 🎈
  • On Deribit, BTC and ETH options continue to show a bias for put options. It’s like betting against a hurricane. 🌩️
  • In BTC, put spreads account for 46% of the total block flow of the past 24 hours with put diagonal spread at distant second. ETH flows display a similar profile. It’s like a party where everyone’s bringing a raincoat. ☔
  • Some traders have picked up deep out-of-the-money IBIT puts at the $15 strike. (yes you read it right). It’s like betting on a horse with no legs. 🐴

Token Talk

By Oliver Knight

  • The altcoin market was dealt another brutal blow on Friday, as if it had been hit by a rogue asteroid. 🌌
  • The Fear and Greed Index flashed 11/100, its lowest since CoinMarketCap began recording it in June 2023. It’s like a zombie apocalypse for investors. 🧠
  • , , , and all lost between 16% and 18% of their value over the past 24 hours as traders sold into an incredibly illiquid market. It’s like trying to buy a house in a ghost town. 🏚️
  • Bitcoin and ether weren’t immune, falling about 10% each, although the average crypto relative strength index (RSI) is currently in “oversold” territory, meaning the market may be due a relief rally. It’s like a toddler having a tantrum and then suddenly smiling. 😭😄
  • While the wider market was dealing with a bruising sell-off, a few traders managed to pocket millions of dollars by sniping base founder Jesse Pollak’s creator coin, JESSE. Two of the traders collectively made $1.3 million by purchasing the tokens in the same block the token was deployed, according to Arkham Intelligence. It’s like finding a gold nugget in a dumpster. 🎁

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2025-11-21 15:04