After record crypto crash, a rush to hedge against another freefall

Following the largest crypto liquidation in history last Friday, options market investors are bracing for more volatility and further declines in bitcoin and ether, aggressively positioning in trades that offer protection against another potential freefall.

Market participants said the crypto sector on Friday saw more than $19 billion in liquidations across leveraged positions as panic selling and low liquidity triggered sharp swings. The plunge came after U.S. President Donald Trump announced late on Friday a 100% tariff on Chinese imports and threatened export controls on critical software.

Crypto analysts said this was the largest wipeout in a 24-hour period in the market’s history, nine times larger than the February 2025 crash and 19…

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