DEEP DIVE: BITCOIN FLASH CRASH
📉 Bitcoin (BTC) took a nosedive recently, marking its largest single-day selloff of the year, plunging below $25k. The culprits? A futures market deleveraging and a whopping 88.3% of short-term holders now nursing unrealized losses.
🎢 Options markets, once in a deep slumber with all-time low volatility, were jolted awake. Implied volatility doubled for short-dated contracts, but interestingly, open interest remained stable.
💥 Futures traders weren’t so lucky. Over $25 billion in perpetual futures contracts were wiped out in a day, reminiscent of the FTX collapse, making it the most dramatic deleveraging since Luna’s 2022 tumble.
Want to learn more? Check out Glassnode’s video report here.