Bitcoin Slides to Four-Month Low; Ether Breaks Below $2,000 as Volatility Triggers Heavy Long Liquidations

Bitcoin sank to its lowest level since April 13, while Ether slipped under $2,000, setting off a wave of forced selling in leveraged positions. Liquidations across the crypto market totaled $958 million over the past 24 hours, with long positions making up $897 million—nearly $900 million in long wipeouts. The selloff comes as inflation worries intensify after U.S. airstrikes. Even with ETH moving below the $2,000 threshold, open interest climbed to a record high, signaling traders may be adding short exposure rather than stepping in to buy the dip. Derivatives activity is also in focus ahead of Friday's options expiry on Deribit, where roughly $8 billion in contracts are set to roll off. Bitcoin's "maximum pain" level is pegged at $75,000, slightly above the current spot price. Volatility is hovering near annual lows, but demand for put options remains notably firm.