Bitcoin price fell 5% to a low of $100,372 due to macro headwinds, liquidation of leveraged trades, and the Elon Musk-Donald Trump feud. Traders now await crypto options expiry and nonfarm payrolls data release on Friday to determine market direction.
Moreover, top altcoins ETH, XRP, SOL, DOGE, ADA, HYPE, and SUI tumbled following BTC price crash, extending BTC fall to over 10% from its all-time high. At the time of writing, BTC price rebounded slightly above $102,400 as investors buy the dip.
Crypto Liquidation Surpasses $1 Billion
According to CoinGlass data, the crypto market saw over $1 billion in crypto liquidations, causing the liquidation of over 227K crypto traders. Notably, more than $900 million long and $100 million short positions were liquidated in the last 24 hours as Bitcoin price failed to hold key support levels.
The largest single liquidation order of XBTUSD valued at $10 million happened on crypto exchange BitMEX. Bitcoin and Ethereum saw a net liquidation of more than $600 million, causing a crypto market crash.
CoinGlass revealed in a post on X that it was the largest long liquidation since February 25. Moreover, high-leverage long positions were completely liquidated.
High-leverage trader James Wynn also failed to prevent the liquidation of Bitcoin position. He was liquidated for 155.38 BTC worth $16.14 million. As a result, he has closed all his long longs, reported Lookonchain.
Bitcoin and Ethereum Options Expiry
Traders now await crypto expiry, with $3.8 billion in Bitcoin and Ethereum options set to expire at 8:00 UTC on the largest derivatives exchange Deribit.
Notably, 30K BTC options with a notional value of $3.21 billion are set to expire on Friday, with a put-call ratio of 0.70. The max pain point is $105,000, which is higher than the BTC price at the time of writing. This indicated that traders have either exited their positions or liquidated.
Also, 242,584 ETH options with a notional value of $588 million were to expire today. At the time of writing, the put-call ratio was 0.63 and the max pain point was $2,575.
On the other hand, the futures market appeared to have already recovered, as evidenced by buying across crypto futures. Total BTC and ETH futures open interests were up 0.80% and 1.74% in the last 4 hours.
Broader Market Eyes US Jobs Data
The US 10-year Treasury yield hovered around 4.39% on Friday, stabilizing after a week of heightened volatility as investors awaited the May jobs report for fresh signals. Also, the US Dollar Index (DXY) has stabilized around 98.8.
While President Donald Trump has continued to call on the US Federal Reserve to cut interest rates, Fed officials have remained cautious, citing elevated uncertainty surrounding trade policy. CME FedWatch indicates a 54% probability of a 25 bps rate cut to 4-4.25% in September.
The U.S. Bureau of Labor Statistics will release non-farm payrolls data later today, which is expected to drive market direction in the coming days. The nonfarm payrolls data is expected to increase by 130,000, the smallest gain in the last three months. Meanwhile, the unemployment rate is forecasted to remain unchanged at 4.2%.
The soft jobs report with a higher than expected unemployment rate would push the Fed to cut rates earlier than currently expected in September. This could trigger a recovery in the markets.
