Crypto markets kicked off the week with nearly $900M in liquidations, led by $320M in ETH longs and $277M in BTC, after a correction tied to weakness in the S&P 500. ETH slid from $4,700 to $4,400, while BTC dipped to $110,200, sparking forced unwinds across majors. Volatility surged, with BTC daily vol jumping from 15% to 38% and ETH spiking from 41% to 70%, underscoring Ethereum’s fragility as leveraged positions unwound.

Now, focus turns to one of the year’s biggest derivative events: the $14.6B Bitcoin and Ether options expiry on Deribit this Friday. BTC options total $11.6B with heavy put interest at $108K–$112K and calls above $120K, reflecting downside hedging but also upside bets. ETH options amount to $3B, skewed toward calls at $3,800–$5,000 and puts at $2,200–$4,000, with max pain levels at $116K for BTC and $3,800 for ETH.

Analysts say BTC expiry points to strong demand for downside protection, while ETH looks more neutral, though positioning remains stretched. With U.S. GDP and jobs data ahead, traders expect choppy conditions into September as expiry and macro catalysts collide.