(Bloomberg) — Bitcoin and Ether extended losses in a volatile week for digital assets, with roughly $140 billion in market value erased and a large options expiry looming.
Ether fell as much as 4.8% to below $4,000, its weakest level in nearly seven weeks, before steadying near that mark. Bitcoin slipped 1.8% as of 8:20 a.m. in New York to around $111,539.
The next test comes Friday, when more than $17 billion in notional open interest tied to Bitcoin and about $5.3 billion for Ether is due to expire, according to derivatives exchange Deribit.
This week’s pullback was kicked off by a wipeout of $1.7 billion in bullish positions, a reminder that liquidation cascades on opaque offshore exchanges are a regular feature of crypto markets. With uneven disclosure and differing index rules, forced unwinds can magnify moves across venues.
Led by Ether, over $370 million in bullish bets have been wiped out in the past 24-hours, according to Coinglass data.
Ether’s retreat came as “institutional inflows cooled” with “technical signals pointing to short-term pressure,” said Rachael Lucas, a crypto analyst at BTC Markets, who expects more liquidations to follow if Ether’s slide takes it below $3,800.
Investors have pulled nearly $300 million from US-listed Ether exchange-traded funds since Monday.
Any further decline would weigh on listed companies that have accumulated billions in Ether or Bitcoin as part of their balance-sheet strategy. These digital-asset treasury stocks trade as high-beta proxies, leaving their market value tied to coin prices.
The turbulence has also unsettled sentiment toward the treasury model. Premiums over net asset value are narrowing, new issuance is diluting holders, and a slew of stocks are trading close the value of the tokens they hold.
Shares of Bitmine Immersion Technologies Inc. and SharpLink Gaming Inc., two digital-asset treasury firms, fell more than 4% in US pre-market trading on Thursday.
Even with the week’s swings, Bitcoin and Ether are still among the year’s strongest performers across major asset classes, a record that has kept institutional flows and retail interest in play.
“If we see a close tomorrow below $4,000 then the next stop would be somewhere in the $3,700-$3,500 area” for Ether, said Tony Sycamore, analyst at IG Australia.
(Adds context throughout)
More stories like this are available on bloomberg.com
©2025 Bloomberg L.P.