Recent events in the crypto market have resulted in significant losses, discussed in the latest report by Bybit and Block Scholes.
Causes and Consequences of the Slump
Trade threats from Donald Trump triggered panic selling in the markets, leading to a $3.1 billion drop in open interest. Bybit estimates that liquidations amounted to between $8 and $10 billion.
Impact on Altcoins
Panic sales exerted pressure on altcoins as perpetual swap funding rates dropped sharply, linked to mass liquidation of long positions. However, BTC managed to keep the rates at a neutral level.
ETH's Market Challenges
ETH demonstrated less resilience than BTC, with spot prices falling below $2.5k, while open interest levels remained steady amid less-than-expected options volatility.
The analysis by Bybit and Block Scholes indicated that the crypto market faces further challenges due to instability driven by external factors.
