Crypto markets faced a tumultuous start to the week, enduring around $900 million in liquidations. This massive tidal wave primarily impacted overleveraged long positions, especially in Bitcoin and Ether.

• Ether traders saw $320 million in forced unwinds, while Bitcoin accounted for $277 million. Additionally, other cryptocurrencies like Solana, XRP, and Dogecoin collectively faced losses exceeding $90 million.
• Following the corrections, volatility has surged, prompting traders to assess critical price levels and brace for potential market instability.

“This sharp move appears to be the result of overleveraged positioning, particularly following ETH’s recent run-up, and an overnight dip in the S&P 500, which weighed on risk assets more broadly,” noted a trader.

Volatility spiked post-correction, indicating a more fragile trading environment as traders divert their focus towards major price thresholds. The implied odds for Bitcoin to revisit $100,000 by the end of September have increased to 35% from 20% just last week, while Ether’s chances of retesting $4,000 have surged to 55%.

As the market braces for economic indicators like GDP data and employment statistics, traders remain alert for more fluctuations, especially within the ether market, where the current positioning favors more concentration than that of Bitcoin.