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BTC volatility spikes as price slides from $85k to $60k

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Bitcoin Core maintainers face shake-up as Gloria Zhao revokes PGP key

Summary

  • BTC fell from about $85k to $60k before stabilizing near $66k, while March 2026 options IV spiked from just above 40% to nearly 65% then eased back toward 50%.
  • Matrixport flags extreme pessimism, shrinking open interest, and persistent outflows as traders cut “tail risk” hedges and overall positioning, leaving liquidity and participation thin.
  • The firm notes that high volatility, muted price sensitivity, and low liquidity have historically preceded strong upside moves in crypto, especially when macro conditions are quietly improving.

Crypto asset management company Matrixport stated in its latest research note that cryptocurrency markets are approaching a critical turning point, according to a report released by the firm.

The report indicated that a sharp decline in Bitcoin (BTC) led to a rapid increase in implied volatility in the options market, followed by a partial pullback. Bitcoin’s price briefly dropped sharply before stabilizing at a lower level, according to Matrixport’s analysis.

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During the same period, the implied volatility of March 2026 expiry options climbed from approximately 40 percent to 65 percent, the report stated. The rebound indicated strong investor demand for hedging against downside risks during the decline, Matrixport noted. The subsequent drop in volatility to around 50 percent suggested that excessive “tail risk” hedges were gradually unwinding and short-term pressure had eased somewhat, according to the firm.

Matrixport stated that the market remains in a high-volatility environment. The report noted that investor sentiment is extremely pessimistic and liquidity continues to flow out of the market. Total position size has significantly decreased as traders reduce their hedging positions against collapse scenarios, weakening market participation, according to the analysis.

The report highlighted that historically, this type of combination—high volatility, low sensitivity, and decreased liquidity—has often preceded strong upward movements in cryptocurrency markets. Matrixport also noted that while there are signs of partial improvement in macroeconomic conditions, the lack of a clear reaction from cryptocurrency prices may not continue for long, according to the firm’s assessment.

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Crypto World

Ethereum Foundation Less Than 500 ETH Away From Hitting 70K Staked ETH Goal

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Ethereum, Staking

The Ethereum Foundation (EF), the non-profit organization that steers development of the Ethereum ecosystem, staked over 45,000 Ether (ETH) on Friday, bringing the total amount staked to about 69,500 ETH, less than 500 coins shy of the Foundation’s 70,000 goal.

The EF staked the coins in a series of transactions, each consisting of 2,047 ETH, with the total amount staked on Friday valued at over $92.2 million, according to data from Arkham Intelligence.

Ethereum, Staking
A portion of the ETH transfers from the Ethereum Foundation’s treasury to the Ethereum Beacon Deposit Contract for staking. Source: Arkham Intelligence

The EF began staking ETH in February as part of its revamped treasury strategy policy announced in June 2025 and will use the yield generated to fund protocol research, development and ecosystem grants. The EF said in its updated treasury policy:

“We are now increasingly moving into staking and DeFi, both to enhance financial sustainability and to support a key application category that is delivering on the promise of permissionless, secure access to base civilizational infrastructure for millions of people today.” 

The foundation staked 2,016 ETH, valued at about $4.1 million in February, followed by 22,517 ETH, valued at about $46.1 million, in March. The EF has locked over $143 million in ETH in the Ethereum Beacon Deposit Contract, according to Arkham Intelligence. 

Ethereum, Staking
The Ethereum Foundation’s crypto holdings and counterparties. Source: Arkham Intelligence

The adoption of a yield-bearing treasury strategy followed pressure from the Ethereum community on the EF to generate income from its treasury to cover expenses, rather than continually selling tokens to fund operations.

Related: Ethereum Foundation sells $10.2M worth of ETH to BitMine in OTC deal

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Vitalik Buterin warns EF staking may force positions in hard forks

Validators, who lock up tokens to secure proof-of-stake (PoS) blockchain networks, can influence which chain is valid in the event of a network hardfork, or a partition of a network into two competing chains.

“If EF stakes, ourselves, this de facto forces us to take a position on any future contentious hard fork,” Ethereum co-founder Vitalik Buterin said in January 2025. 

The EF is exploring ways to mitigate the centralization risks posed by its staking activities in the event of a contentious hard fork, Buterin added. 

Magazine: Ethereum’s Fusaka fork explained for dummies: What the hell is PeerDAS?

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