Bitcoin at Kahanga-Hangang Market Selloff: The Massive Drop Due to Market Volatility

Bitcoin experienced a remarkable drop in the last session, falling from a high of $98,000 to a lower level of $88,000, reflecting widespread market liquidation and indicating serious pressure in the cryptocurrency landscape. This decline is directly linked to new tensions in the geopolitical arena between the US and EU, especially concerns over Greenland tariffs triggering a major selloff across the market.

The Remarkable Drop of Bitcoin and Equity Markets

The major shift began during the Asian trading session, where Bitcoin’s price fell again and all bearish sentiment converged. Nasdaq 100 futures declined by over 1.9% since the derivatives markets opened, while S&P 500 futures dropped by 1.6%, indicating systemic risk in broader financial markets.

This extraordinary volatility is not limited to stocks alone—the cryptocurrency sector suffered a sharp decline, with Bitcoin ending in the $88,000 range after episodes of intense selling pressure. The $98,000 resistance level was actually doubled and backed due to renewed trade tensions, forcing many leveraged positions to exit.

Derivatives Liquidation and Futures Market Carnage

One of the most remarkable aspects of the market downturn is the scale of futures liquidations. Over $360 million in cryptocurrency futures positions were liquidated within just 24 hours, demonstrating how much leverage traders had at the peak of optimism. Most liquidations occurred on bullish bets, meaning the majority of long positions were forced out by changing market sentiment.

The 30-day implied volatility (IV) of Bitcoin, which measures derivatives market expectations, rose significantly to 42% from 39.7%—a clear indicator that traders are actively buying options for hedging protection. This level of volatility signals market uncertainty and increased demand for downside protection instruments.

The Options Market and Downside Hedging

On Deribit, the largest cryptocurrency options exchange, traders continue to price put options (downside bets) higher than call options (upside bets) for Bitcoin and Ethereum. This price imbalance is remarkable—it directly reflects widespread concern about further downside risk.

Traders on Derive, a decentralized derivatives platform, priced in a 30% probability that Bitcoin will fall to the $85,000 level, indicating serious downside fears. Such probability estimates are high compared to normal market conditions and signal elevated anxiety within the trader community.

Altcoin Massacre and Token Underperformance

The remarkable decline did not stop at Bitcoin—it also softened altcoins due to lower market liquidity. Ethereum fell more than 1.70%, and Solana declined by -2.89% over 24 hours, following Bitcoin’s trend but with greater magnitude.

DeFi tokens received a more brutal treatment: AERO dropped 2.00%, while SKY rebounded by 1.39%, showing highly differentiated market action in the altcoin space. The memecoin sector is particularly vulnerable—the CoinDesk Memecoin Index recorded a daily loss of 3.91%, reflecting speculative position unwinding.

Privacy coins also suffered: Monero fell 9% since midnight, while DASH increased by -9.16%. This decline reflects weaker trader interest and market exit from niche asset categories.

Critical Support Levels and Market Outlook

The next remarkable chapter in market evolution will depend on whether Bitcoin can hold within the $85,000–$95,000 consolidation range. If BTC begins to stabilize in this range, the altcoin market could gain breathing room and recover some losses. But if Bitcoin drops below $85,000, a cascade of further liquidations is certain to occur, triggering additional sell pressure in altcoin sectors.

The key factor for market recovery is whether we can see a resolution to US-EU trade tensions. The Greenland tariff dispute remains unresolved, and any negative development could fuel further remarkable declines. Safe haven assets like gold and silver have risen to record highs, indicating a risk-off sentiment in global markets.

The Pudgy Penguins and NFT Market Resilience

Amid the remarkable selloff, Pudgy Penguins stands out as one of the strongest NFT-native brands in this cycle. The project has transitioned from pure speculation to a multi-vertical consumer IP platform with retail partnerships and mainstream appeal. The ecosystem spans physical-digital products (over $13M in retail sales and more than 1M units sold), games (Pudgy Party surpassed 500k downloads in just two weeks), and widely distributed tokens (airdropped to over 6M wallets).

Although the market has priced Pudgy at a premium relative to traditional IP peers, sustained success depends on flawless execution in retail expansion, gaming adoption, and deeper token utility development.

XRP ETF Inflows and Institutional Interest

Contrary to bearish sentiment, US-listed spot XRP ETFs attracted a net inflow of $91.72 million this month—a remarkable divergence from consistent Bitcoin ETF outflows. Institutional interest in XRP has its own narrative and momentum independent of broader market sentiment. Ripple’s coin fell 1.87% over 24 hours, but ETF inflow data shows underlying strength in investor demand.

This impressive ETF accumulation could signal selective institutional buying during weakness, especially for XRP ecosystem positioning. The long-term implications are positive if this interest is sustained within a larger price recovery context.

The Next Step: Market Capitulation or Washout?

The fundamental question facing the crypto market in the coming days is: when will stabilization begin? Liquidity conditions have remained hollow since the October crash, meaning supply/demand imbalances could produce sharp price swings. The $360 million in daily liquidations is impressive in scale, but it could be a healthy washout if it clears overleveraged positions and lays a foundation for sustainable recovery.

Volatility will not end immediately—the 42% IV level tends to stay elevated until trade tensions and economic policy uncertainties are clearly resolved. Long-term investors may see this as an opportunity, while traders need heightened risk management given the ongoing dramatic price swings.