The recent wave of crypto market volatility led to over $900 million in liquidated bullish positions, hitting major cryptocurrencies including XRP, according to data shared after a severe dip in both bitcoin (BTC) and ether (ETH).

Sharp Declines Drive $900M in Losses

The crypto market began the week with significant losses, largely impacting traders who were overexposed to leveraged long positions. Ether (ETH) took the biggest hit with approximately $320 million in liquidations. Bitcoin wasn’t far behind, facing around $277 million in forced sales. Other tokens, such as Solana (SOL), XRP (XRP), and Dogecoin (DOGE), collectively suffered another $90 million in combined liquidations, as per analytics from Coinglass.

ETH dropped sharply from around $4,700 to $4,400, while BTC dipped to $110,200, aligning with a broader downturn seen in the S&P 500 index. The similarities in movement point to interconnected investor sentiment across tech and digital assets.

According to trader insights from Derixe.xyz, “This sharp move appears to be the result of overleveraged positioning, particularly following ETH’s recent run-up, and an overnight dip in the S&P 500, which weighed on risk assets more broadly.”

Surging Volatility Reveals Market Fragility

In the wake of the downturn, crypto volatility surged. Bitcoin’s daily volatility rose from 15% to 38%, while Ether’s jumped from 41% to a striking 70%, based on metrics from Derive.xyz. Analysts suggest this trend highlights that ETH faces deeper instability during market corrections, driven by high levels of leveraged trading.

Changes in options contracts give more context to the prevailing fear. The 25-delta skew, a common measure of trader sentiment, flipped into negative territory for both BTC and ETH, signaling a rising demand for protective put options — a stance not seen in two weeks.

Critical Price Levels in Sight

With markets resetting, investors are watching psychologically significant price levels for future direction. Market expectations suggest a 35% chance that BTC revisits the $100,000 mark by the end of September, up from 20% last week. ETH, meanwhile, has a 55% probability of retesting $4,000, suggesting a tighter trading range but more intense positioning.

The contrast in sentiment toward BTC and ETH is becoming more evident in futures markets. CME trading data shows record-high short positions in ETH futures. These may be linked to hedging activity around digital asset tokenization (DAT) or arbitrage strategies exploiting differences in funding and basis pricing.

“BTC implied vol collapsed to new record lows post-Powell as a bit of a surprise, leading to a significant divergence vs a (still) rising ETH IV,” commented Augustine Fan, Head of Insights at SignalPlus, in a message shared with CoinDesk.

Market Awaits Key Data Events

Looking ahead, eyes are on upcoming U.S. macroeconomic data for market direction. GDP results are scheduled for release on August 28, while unemployment figures arrive in early September. Despite recent liquidations reducing leverage in the system, volatility is expected to continue — particularly for ETH, where leveraged bets and concentrated capital flows remain prominent.

As XRP continues to navigate these volatile conditions along with other altcoins, traders and analysts remain cautious. Positioning in ETH futures suggests a heightened sensitivity, but XRP’s correlation with broader market trends makes it vulnerable to future shifts in sentiment and macroeconomic performance.

Related: XRP Price: $12M Max Pain for Bears

Read more: Massive $14.6B Bitcoin and Ether Options Expiry Shows Bias for Bitcoin Protection