• $500 million in liquidations on crypto derivatives, though DeFi blue chips AAVE and 1INCH buck the trend with double-digit gains
  • Eth 2.0’s ‘Beacon Chain’ completed its ‘Altair’ hard fork shortly before 7:00 am ET.

Bitcoin and the broader digital asset market fell sharply during early morning hours in New York, with BTC notching a roughly 5% decline and ETH tumbling over 8% in the space of a few hours, driven by cascading liquidations of traders using dangerously high levels of leverage.

In recent days both the amount of leverage and the open interest in crypto derivatives markets have been climbing to levels not seen since the September 7, 2021 mini-crash. This has been a frequent theme of the current bull market rise, and the third such drawdown in the past week alone.

Ether’s drop was more pronounced, though also similar to an 8% drop seen on October 21, after the second largest cryptocurrency registered an all-time high.

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