Ethereum and Bitcoin volatility bombs, large-scale liquidations, and market manipulation suspicions resurface

Early Morning Intraday Repeated Declines in a Few Hours… Speculation on “Deliberate Moves by Institutions”

Last week, the cryptocurrency market once again experienced extreme price volatility. Bitcoin broke through the $90,000 level immediately after the US market opened but retreated to around $85,000 in less than two hours. Ethereum followed a similar trajectory, rising to approximately $3,100 before falling back to the $2,600 range. Amidst this rapid fluctuation, over $400 million in leverage positions in the global futures market were liquidated in an instant.

Single Largest Liquidation, Over $11 Million on Hyperliquid

According to CoinGlass data, the liquidation volume in this range is significant. On Hyperliquid(Hyperliquid), a decentralized perpetual futures exchange, approximately $11.08 million in liquidation orders were recorded as the highest. Ethereum was hit particularly hard, with liquidations exceeding $150 million, while Bitcoin saw about $140 million in liquidations.

In the case of Bitcoin, an interesting pattern emerged. After $78 million in short positions were liquidated during the bullish phase, long positions were subsequently liquidated during the bearish phase—a typical liquidation flow. Hyperliquid set a record for the largest liquidation this month, with a total liquidation volume reaching $33 million.

‘Rapid Rise - Rapid Fall’ Pattern Repeated 4 Times in 2 Weeks, Suspected of Intentional Moves

This volatility is not a one-off event. Over the past two weeks, the market has repeated a similar pattern more than four times. Some traders suspect that large institutions may be intentionally manipulating prices.

On the other hand, there are perspectives viewing this from an algorithmic trading standpoint. During high-volatility periods, automated trading algorithms quickly scan shallow liquidity, simultaneously closing stop-losses and leverage positions. Ultimately, regardless of which hypothesis is correct, the market environment is becoming unfavorable for leverage traders.

ETF Outflows Weaken Market ‘Cushion’ Role

This sharp price fluctuation is also concerning because it overlaps with ETF fund flows. According to SoSoValue data, net outflows from Bitcoin and Ethereum ETFs exceeded $1 billion over the past two days. With no new capital inflows, the market has become more sensitive to minor shocks.

Mike Marshall, head of research at Amber Data, said, “When the market structure weakens below, and ETF inflows are also weak, it becomes difficult for the market to quickly stabilize when momentum reverses.” He added that the combination of interest rate uncertainty and risk-averse sentiment is reinforcing the bearish trend.

Next Support Level is in the $80,000 Range… $60,000 Also in Sight

According to Marshall’s analysis, the first meaningful support based on ETF purchase prices is around $80,000. If ETF net outflows continue or financial conditions tighten further, $60,000 could become the next key reference level.

Currently, Bitcoin is trading at $91,280, with a 24-hour increase of 1.71%. Ethereum is up 1.30%, trading at $3,140. Hyperliquid’s HYPE has a 24-hour trading volume of $7.18 million. The market’s direction will likely depend on future ETF fund flows and macroeconomic variables.