CoinDesk
Crypto futures liquidations jumped fourfold to $1.57 billion after the Binance hack sent Bitcoin and Ether lower. Bitcoin touched $76,400 before recovering some losses, while Ether briefly hit $2,170 and rebounded to around $2,220. Binance said about $3 billion in stolen assets had been frozen and withdrawals remained paused; TRM Labs and Elliptic attributed the attack to North Korea-linked hackers.
Why it matters
The liquidation spike came with a 74% increase in trading volume to $346.1 billion and a 3% drop in open interest to $136.3 billion, indicating traders closed positions as prices fell. Bitcoin and Ether accounted for more than half of liquidations, at $522 million and $361 million, respectively. Ether open interest fell faster than its price, while Bitcoin open interest declined only 1.4% as BTC fell 3.1%.
Options activity also turned defensive. Five of the six highest-volume Bitcoin options were puts, and put skew rose across time frames for both Bitcoin and Ether. The shift signals stronger demand for downside protection, although gains in implied volatility were partly erased after spiking in Asia.
Market impact
Futures positioning weakened across much of the market. Open interest fell 13.3% for Solana and 11.8% for NEAR, while BNB dropped 6.2% with negative funding and selling-led volume. HYPE bucked the decline, rising 15% as open interest climbed 28% and buying dominated.
The broader selloff also coincided with falling Nasdaq-100 futures and weakness in Intel shares. U.S. spot Bitcoin ETFs, however, took in $17 million on Thursday, marking a fourth straight day of inflows before the theft began. The divergence leaves traders weighing persistent spot demand against defensive derivatives positioning and market-wide risk aversion.
Frequently asked questions
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How large was the liquidation spike after the Binance hack?
Crypto futures liquidations jumped fourfold to $1.57 billion. Bitcoin and Ether accounted for $522 million and $361 million, respectively.
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What did the drop in futures open interest indicate?
Open interest fell 3% to $136.3 billion as trading volume rose 74% to $346.1 billion, indicating traders closed positions during the price decline.
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How did options traders position in Bitcoin and Ether?
Five of the six highest-volume Bitcoin options were puts, and put skew rose across time frames in both Bitcoin and Ether, showing stronger demand for downside protection.
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Which major assets saw notable futures outflows?
Solana open interest fell 13.3% and NEAR open interest declined 11.8%. Ether open interest dropped 5.8% as its price fell 4%.
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Did spot Bitcoin ETF inflows stop during the market decline?
No. U.S. spot Bitcoin ETFs recorded $17 million in inflows on Thursday, their fourth consecutive day of inflows, before the theft began.
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