Derive Predictions Update: March 11th 2025
Crypto Markets Hit Hard with BTC, ETH, and SOL Fall as Volatility Spikes
March 11, 2025 By Dr. Sean Dawson
The crypto market has taken a significant hit in the last 24 hours, with major assets facing sharp declines. BTC fell to $79,522, down 3.2%, ETH dropped to $1,886, down 6.7% and SOL decreased to $119, down 6.3%.
This market downturn is largely driven by broader economic concerns, including fears of a US recession and persistent inflation.
The NASDAQ is down 4%, and the latest jobs report showed only 150,000 jobs were added, falling short of expectations. Additionally, rising tensions surrounding the US trade war, particularly with Mexico and Canada, have fueled market unease.
Crypto Liquidations
A massive $787 million worth of liquidations took place in the last 24 hours, with nearly $600 million attributed to long positions:
- $289M from BTC
- $200M from ETH
- $40M from SOL
- $29M from XRP
This comes amid growing bearish sentiment, with Solana seeing a 90% drop in revenue from its January highs, and crypto exchange-traded products experiencing $876 million in outflows, most notably from BTC ETFs.
Volatility Surges
BTC’s 7-day ATM implied volatility (IV) spiked from 51% to 69% in the last 24 hours. While ETH saw a similar surge in IV, increasing from 65% to 90%.
Source: Derive.xyz, Amberdata
Source: Derive.xyz, Amberdata
Derive Trading Activity
On Derive.xyz, traders are responding to these market shifts by buying puts to cover their downside risk. Nearly 43% of all contracts traded in the last 24 hours were puts bought, highlighting the growing need for downside protection in these volatile conditions.
Source: Derive.xyz, Amberdata
Market Outlook
The market is facing significant challenges as the macroeconomic environment worsens, and crypto assets are no exception. With bearish sentiment building, traders are turning to downside hedging strategies, especially as volatility surges across both traditional and crypto markets. The coming weeks will be critical for assessing how the broader economic situation impacts digital asset prices and trading behavior.