Crypto Market Shows High Volatility on Wednesday
The crypto market experienced sharp ups and downs on Wednesday. Bitcoin (BTC) quickly rose from $86,000 to over $90,000. But within two hours, it dropped back near $85,000. Ethereum (ETH) had a similar pattern, moving from $2,900 up to $3,100, then falling to $2,800 in a few hours.
This sudden change caused large liquidations. Over $400 million in leveraged crypto futures positions were wiped out, according to Coinglass data. The biggest single liquidation was a $11.08 million HYPE/USD trade on the decentralized exchange Hyperliquid.
- Ethereum liquidations topped $150 million, mostly from long positions.
- Bitcoin liquidations were about $140 million, led by $78 million in short positions.
- Hyperliquid faced its largest liquidation this month, totaling $33 million.
Sharp price swings like these often cause liquidations to be underreported. API delays and off-exchange trades add to this effect.
Crypto ETF Outflows Impact Market Stability
This volatility comes alongside heavy outflows from crypto exchange-traded funds (ETFs). Bitcoin and Ethereum ETFs saw net outflows exceeding $1 billion over the past two days, according to SoSoValue data.
Mike Marshall, head of research at Amberdata, said, “Weak market structure beneath price and light ETF inflows reduce the market’s ability to stabilize quickly when momentum shifts.”
He added that concerns about rising interest rates and cautious risk sentiment have worsened market weakness. Marshall noted, “The market tends to test levels until buyers show conviction. Our analysis suggests the first strong support is near $80,000 for Bitcoin. If outflows continue or financial conditions tighten, $60,000 could become the next major level.”
Current Prices and Market Outlook
At the time of writing on Wednesday, Bitcoin traded near $86,000, down 2% over 24 hours. Ethereum was near $2,800, down 4% in the same period.
