Bitcoin Price Today: Traders Brace for More Volatility After $1.5B Wipeout

Bitcoin remained largely flat on Tuesday, extending its decline after a massive $1.5 billion liquidation in crypto derivatives during the previous session. Traders are preparing for further turbulence ahead of one of the market’s biggest options expiries.

Powell Speech in Focus

Investors are also watching for comments from Federal Reserve Chair Jerome Powell later today. His remarks may give more clues about the Fed’s monetary policy outlook after last week’s interest rate cut.

The world’s largest cryptocurrency traded 0.1% lower at $112,711.6 as of 01:55 ET (05:55 GMT), holding near its weakest level in two weeks.

$1.5 Billion Crypto Liquidation Hits Market

Bitcoin briefly dropped over 3% below $112,000 on Monday before trimming some losses. According to Coinglass data, long positions worth about $1.5 billion were liquidated in just one day, the biggest washout in months.

More than 400,000 traders saw leveraged bets erased. Ethereum sank nearly 9%, while popular altcoins like Dogecoin also suffered steep declines.

The sell-off was reportedly driven by overextended positioning and thin liquidity, which amplified price swings. It was further fueled by options traders betting on sharp moves.

Record Options Expiry Ahead

Markets are now bracing for a major options expiry on Friday. Deribit data shows more than $23 billion in Bitcoin and Ethereum options are set to expire, one of the largest roll-offs ever seen.

Federal Reserve Outlook

The Fed remains a key factor for markets this week. Powell’s speech follows remarks from Governor Stephen Miran on Monday, with more policymakers expected to weigh in soon.

Last week, the Fed cut rates by 25 basis points. Its dot plot indicated two more cuts could follow this year. However, officials continue to stress that inflation is still above target and future policy will depend on economic data.

Traders are also awaiting Friday’s U.S. core PCE inflation report, the Fed’s preferred gauge.

China Moves Against Tokenized Assets

Separately, Reuters reported that China’s securities regulator has asked some mainland brokerages to halt tokenization of real-world assets (RWA) in Hong Kong. The China Securities Regulatory Commission is reportedly tightening oversight to ensure that such products are backed by legitimate businesses.

RWA tokenization converts assets like property or bonds into blockchain tokens. Hong Kong has positioned itself as a hub for digital finance, attracting Chinese firms eager to launch tokenized products.

Altcoins Hold Losses

Most altcoins continued to trade lower on Tuesday.

• Ethereum fell 1.8% to $4,190.4 after Monday’s steep 9% drop.
• XRP edged up 0.4% to $2.87 after touching a three-week low.
• Solana slipped 3.8%, Cardano lost 2.2%, and Polygon dropped 3%.
• Meme tokens also struggled, with Dogecoin down 1.7% and $TRUMP losing 5.7%.