Crypto Markets Whipsaw as Liquidations Mount and Futures Volumes Surge

Crypto market volatility persisted on Tuesday, following significant losses and over $1.5 billion in liquidations on Monday, amid ongoing tensions from President Donald Trump's trade war.

Bitcoin (BTC) slipped 0.6% over the past 24 hours to trade around $78,000, while Ethereum (ETH) dropped 2% to $1,534. In contrast, Ripple (XRP) rose 0.6% to $1.91, and Solana (SOL) inched up 0.2% to $107. Despite gains in some altcoins, the broader cryptocurrency market capitalization declined 2.5% to $2.58 trillion, according to CoinGecko.

Over the same period, more than 82,000 traders were liquidated for a total of $247 million. Bitcoin accounted for $87 million of that amount, followed by Ethereum with approximately $60 million, according to Coinglass.

“Intense Uncertainty”

“We are navigating a period of intense uncertainty, including geopolitical tensions, active conflicts, trade wars, and looming recession fears,” Dr. Kirill Kretov, a senior automation expert at CoinPanel, told The Defiant.

Dr. Kretov added that predictably, such risk-off sentiment has investors flocking towards traditional safe havens like gold. However, he noted that beneath the surface, the current landscape “feels more like a calculated cycle: trigger panic, force retail capitulation, crash prices, then let larger players scoop up assets at discounts.”

“A plunge to $10K Bitcoin (McGlones theory) seems unlikely unless there’s systemic collapse, but a sustainable surge to $150K also feels premature,” he said.

Futures Booming

The market’s volatility is underscored by a surge in futures trading volumes. According to data from Glassnode, most major digital assets have seen a sharp uptick in futures activity over the past seven days. BTC futures volumes rose by 64%, while ETH volumes jumped by 58%.

XRP futures recorded an even stronger increase of 78%, and SOL futures climbed 58%. This surge marks a notable reversal from the previous month when futures volumes had been steadily declining.

Such spikes are typical in volatile markets, as some investors rush to "buy the dip" while others are liquidated.

“Volatility Rules”

Dr. Kretov noted that volatility rules this phase. “Until enough players adapt to profit from the chaos, we’re likely to stay in this choppy zone,” he said. “However, once the tide turns, a true correction and new all-time highs could follow."

He explained that sudden 10% drops followed by equally sharp rebounds the next day have become the norm and are only “amplified by fragile market depth and emotionally driven trading.”

Even traditional markets are beginning to “mimic memecoin behavior,” he concluded, pointing to instances like the S&P 500 briefly spiking on false news, only to correct minutes later.