Crypto assets are experiencing a major correction, and investors are betting on a new round of volatility

Cryptocurrency traders are betting on a new bout of volatility after a $1.50 billion sell-off. In the absence of a clear trigger, the massive sell-off has once again highlighted the fragility of the cryptocurrency market, while the movement of option prices also points to a possible increase in volatility in the future. The sell-off, the largest so far this year, followed months of speculative gains that forced position squaring on leveraged positions in Ethereum and other tokens, allowing traders to brace for greater volatility to follow.
At present, there is strong demand for options contracts betting on sharp price fluctuations, reflecting the high degree of tension in the entire digital asset market. Ethereum plunged as much as 9% in the previous session, wiping out bullish bets of nearly $500 million. "The market is in a state of consolidation after yesterday's sharp correction, but the overall sentiment still looks quite nervous," said Carolyn Moron, co-founder of Orbit Markets. If Bitcoin falls below $110,000 and Ethereum falls below $4,000, it could trigger further selling. (Jin Ten)