Deribit Exchange Sees Massive Unwinding as Bitcoin Plunge Triggers $2B Options Liquidation
Global cryptocurrency markets faced a brutal selloff, shedding $140 billion in hours as Bitcoin collapsed below the critical $90,000 support level. The flagship cryptocurrency tumbled to $85,200 amid regulatory uncertainty and a cascade of leveraged derivative unwinding. Analysts point to China's renewed mining restrictions and record-high open interest in options markets, particularly on platforms like Deribit, as key catalysts for the sharp downturn.
Derivative markets exacerbated the plunge, with approximately $2 billion in Bitcoin options positions concentrated at the $85,000 strike creating a vortex of forced liquidations. The selloff reflects mounting stress on miners and over-leveraged traders, with no immediate technical signs of stabilization in sight.
