Derive.xyz has noted that a massive and truly unprecedented flash crash of liquidations saw nearly $7 billion wiped across all markets within a span of just one hour, with $5.5 billion coming from longs. The firm also pointed out that Bitcoin and Ethereum have accounted for $3.3 billion of those liquidations.
In total, nearly $9.6 billion in positions have now been liquidated during the past 24 hours, marking the largest single-day wipeout in crypto history. This development has come after US President Donald Trump and his Administration announced 100% tariffs on China. Unfortunately, these kinds of abrupt and unpredictable announcements have now become a common occurrence. If this pattern continues, then it could lead to declining investor confidence and capital being increasingly withdrawn from crypto and stock markets.
The current government shutdown may also be negatively impact investor sentiment and could significantly impact consumer behavior in an increasingly uncertain economic environment.
Derive.xyz also mentioned that BTC plummeted by over $12K in just 30 minutes, “falling from $117.5K to $105.5K, while ETH dropped from $3.8K to $3.4K over the same period.”
Both of the crypto-assets have since partially recovered to $112K and $3.9K, respectively (at the time of writing).
The team at Derive.xyz added that Altcoins were hit even harder.
$HYPE fell almost 50% from “$42 to $22 before rebounding to $39.”
While $DOGE collapsed nearly “60%, from $0.23 to $0.09, before stabilizing around $0.18.”
They also shared:
“Volatility exploded as weekly and monthly ETH at-the-money implied vols spiked to 74% and 67%, up from 57% and 62%, respectively.”
They further noted:
“In the options market, traders rushed to buy protection. The October 31 expiry saw a surge in $115K and $120K puts, while 25-delta skew collapsed from -1% to -10%, signaling a sharp shift from upside call exposure to downside insurance.”
As covered, Derive.xyz (TVL $115.8M, $18.6B trade volume) is the so-called decentralized protocol that creates programmable onchain options, perpetuals, and structured products. It enables users with accessible automated strategies to “build, grow, and preserve wealth.”
