Crypto Traders Bet on Fresh Volatility Post $1.5 Billion Wipeout

Group 1 - A significant liquidation event exceeding $1.5 billion has highlighted the vulnerability of cryptocurrency markets, occurring without a clear catalyst and indicating potential for increased volatility ahead [1] - The recent selloff, one of the largest this year following a period of speculative rallies, has led to the unwinding of leveraged positions in Ether and other tokens, with traders preparing for further market fluctuations [2][5] - Bitcoin and Ether, the two largest cryptocurrencies, showed signs of recovery with Bitcoin up approximately 0.1% and Ether up about 0.2% after experiencing substantial losses, including a 9% drop in Ether during the previous session [3][4] Group 2 - The options market for Bitcoin reflects a divided sentiment, with significant positions taken to protect against a drop below $95,000 and to bet on a rise above $140,000, indicating expectations of market turbulence [6] - A substantial $23 billion in Bitcoin and Ether options contracts are set to expire soon, contributing to cautious market sentiment, with short-term wagers gaining popularity as traders anticipate sudden price movements [7] - The recent price increases in cryptocurrencies were largely driven by crypto treasury firms, which have slowed their token purchases due to declining share prices, thereby weakening demand and contributing to the recent downturn in digital assets [8]