Bitcoin, Ether, and other major cryptocurrencies extended their recent declines this week as risk sentiment weakened, sending digital assets into a volatile stretch that has erased more than $140 billion in market value. The pullback comes ahead of a massive options expiry on Friday, when over $17 billion in open interest for Bitcoin and roughly $5.3 billion for Ether are set to settle, according to derivatives exchange Deribit.
Ether led the downturn, falling as much as 8.2% to under $4,000, marking its lowest level in nearly seven weeks. Bitcoin slipped below $110,000 for the first time in four weeks, down roughly 4.3% by mid-afternoon in New York. More speculative tokens were hit even harder, with Dogecoin and Cronos sliding 8.9% and 9.5%, respectively. The week’s decline was triggered in part by a $1.7 billion liquidation of bullish positions, highlighting the recurring impact of forced unwinds on offshore exchanges, where uneven disclosure and differing index rules can amplify price swings across platforms.
Institutional activity also played a role. According to BTC Markets analyst Rachael Lucas, Ether’s drop reflects “cooled institutional inflows” and “technical signals pointing to short-term pressure.” Over the past 24 hours, more than $370 million in bullish Ether positions were wiped out, while U.S.-listed Ether exchange-traded funds saw nearly $300 million in outflows since Monday. Analysts warn that if Ether falls below $3,800, additional liquidations could intensify, further weighing on prices.
The turbulence is affecting firms holding significant digital assets on their balance sheets. Treasury-model companies such as Bitmine Immersion Technologies Inc. and SharpLink Gaming Inc. fell more than 8%, reflecting narrowing premiums over net asset value, new share issuance diluting existing holders, and stocks trading close to the value of the coins they hold. These dynamics underscore the high-beta nature of crypto-linked equities, which remain highly sensitive to coin price movements.
Despite this week’s volatility, Bitcoin and Ether remain among the top-performing major assets for 2025, sustaining ongoing interest from both institutional and retail investors. Nevertheless, the looming $22 billion options expiry and continued liquidation pressure highlight the precariousness of crypto markets, where rapid swings and high leverage can quickly reshape valuations and sentiment.
Pump Radar
Stock Alerts