Cryptocurrency markets saw over US$1.5 billion in liquidations, highlighting ongoing volatility with no clear cause for the sudden selloff.

The selloff forced leveraged bets in ether and other tokens to unwind, prompting traders to prepare for further market swings.

Options contracts betting on large price moves are in high demand, while stocks and other risk assets are rising.

Ether fell around 0.9% in Asia on September 23, morning after dropping as much as 9% in the previous session, which wiped out nearly US$500 million in bullish positions, while bitcoin was down 0.8%.

Around US$23 billion in bitcoin and ether options are set to expire on September 19, according to Deribit, one of the largest such expiries to date.

Much of this year’s cryptocurrency rally was driven by public firms buying tokens, but recent declines in their share prices have slowed new token purchases, reducing demand and adding pressure to the market.

Ether’s decline was cited by market analysts as being due to excessive leverage and low liquidity rather than any clear catalyst.

🔗 Source: Bloomberg