Articles for category: Crypto

October 13, 2025

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Crypto Derivatives Funding Rates Hit New Lows Amid Historic Liquidations

Funding rates across cryptocurrency derivatives markets have dropped to their lowest levels since the 2022 bear market, as an influx of short positions surged during the past weekend. This sharp decline was highlighted by on-chain analytics firm Glassnode on Sunday, marking one of the most significant leverage corrections in the history of the crypto sector. Understanding Funding Rates and Market Sentiment Funding rates are periodic settlements between traders in perpetual futures contracts, the most widely traded crypto derivatives. These payments help align the perpetual contract price with the underlying asset’s spot price. When funding rates are low or negative, it

October 12, 2025

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Tether CEO Highlights Bitcoin and Gold as Lasting Safeguards Against Fiat Decline

Tether’s CEO Paolo Ardoino recently reaffirmed the firm’s confidence in bitcoin and gold as enduring hedges against the devaluation of fiat currencies. In a succinct post on the social media platform X, Ardoino stated, “Bitcoin and Gold will outlast any other currency.” This message underscores Tether’s ongoing strategy of integrating these assets into its reserve structure, reflecting a broader approach to financial diversification. In May 2023, Tether announced a policy to allocate up to 15% of its net realized operating profits for purchasing bitcoin. Importantly, these bitcoin acquisitions are added to Tether’s reserves as surplus assets rather than being used

October 12, 2025

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Binance Clarifies Zero-Price Token Display Was a UI Glitch, Not Actual Crash

Cryptocurrency exchange Binance has addressed user concerns following a widespread incident where several altcoins appeared to have plummeted to $0 during last Friday’s market downturn. The exchange confirmed that the apparent zero valuations were the result of a display issue rather than genuine price collapses. Among the tokens seemingly crashing to zero on Binance were IoTeX (IOTX), Cosmos (ATOM), and Enjin (ENJ). These tokens maintained stable values on other major cryptocurrency platforms, which prompted confusion and alarm among traders using Binance. On Sunday, Binance released a statement explaining the issue. A key factor involved certain trading pairs, including IOTX/USDT, which

October 12, 2025

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Crypto Markets Poised for Strong Q4 as Fed Cuts and ETF Demand Boost Momentum

As the fourth quarter of 2025 begins, cryptocurrency investors are entering a period that has historically favored strong gains, especially for Bitcoin (BTC). Since 2013, Bitcoin has posted an average return of approximately 79% during Q4, suggesting potential for robust performance in the coming months. A recent analysis by CoinDesk Indices highlights several key factors that could support this seasonal trend. The Federal Reserve’s latest interest rate cut has lowered borrowing costs to their most competitive level in nearly three years. This monetary easing has fostered a more risk-on market sentiment, enticing institutional players to ramp up their exposure to

October 12, 2025

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Binance Altcoins Briefly Crash to Zero Amid Massive Market Liquidations

During the substantial cryptocurrency market downturn on October 9-10, several altcoins on Binance, including Cosmos’s ATOM, IoTeX’s IOTX, and Enjin’s ENJ, experienced a sudden and dramatic price collapse, briefly touching zero on the exchange. This unusual occurrence was confined to Binance, as these tokens maintained significant value on other centralized crypto platforms. The market-wide decline was severe, marking the harshest drop since the collapse of FTX. The total crypto market capitalization fell by nearly $850 billion within hours. Bitcoin (BTC) saw a decrease of approximately 10-15%, dropping from highs near $124,000 to lows around $105,000. However, altcoins faced a more

October 12, 2025

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Bitwise’s Jonathan Man Breaks Down Crypto’s $20B Liquidation Crisis and Market Recovery

Last Friday witnessed a staggering sell-off in the cryptocurrency markets, resulting in what Jonathan Man, portfolio manager at Bitwise, has described as the most severe liquidation event in crypto history. Over $20 billion vanished as liquidity dried up and forced deleveraging rapidly accelerated across exchanges. Perpetual futures, known as “perps,” are widely used instruments providing exposure without an expiry date. These cash-settled contracts hedge positions via funding mechanisms rather than physical delivery. Because profits and losses are netted against a shared margin pool, trading platforms must dynamically reallocate risk when volatility intensifies to maintain balanced books. Man, lead manager of

October 12, 2025

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Crypto Traders Pin Market Drop on US-China Tariff Amid Broader Liquidation

Retail crypto traders were quick to attribute Friday’s sharp market downturn to US President Donald Trump’s announcement of a 100% tariff on Chinese imports, according to data from Santiment. However, analysts caution that the decline stems from a more complex mix of factors beyond the tariff news alone. Santiment characterized the retail reaction as typical “rationalization” behavior, where investors seek a single identifiable cause for dramatic losses. “After the selloff, the crowd hastened to agree on what might have triggered the rapid drop,” Santiment noted in a Saturday report, highlighting the surge in social media conversations linking the crypto market’s

October 11, 2025

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Understanding Auto-Deleveraging: The Hidden Mechanism That Can Slash Crypto Perpetual Profits

Auto-deleveraging (ADL) acts as a critical fail-safe on cryptocurrency perpetual futures platforms, stepping in to reduce winning positions during extreme market stress. Doug Colkitt, founder of Ambient Finance, recently clarified how ADL functions and why even experienced traders may find its impact surprising. Perpetual futures, often called “perps,” are cash-settled derivative contracts without expiration dates. They closely track the spot market through periodic funding payments rather than physical delivery of coins. Unlike traditional asset trading, both profits and losses on perps are settled against a shared margin pool, not through actual transfers of cryptocurrency. This setup requires exchanges to rapidly

October 11, 2025

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Crypto Market Plummets Amid Short-Term Shocks, Analysts See No Enduring Harm

The cryptocurrency market experienced a dramatic plunge on Friday, with some digital assets losing up to 95% of their value in less than 24 hours. Despite the severe selloff, investment analysts from The Kobeissi Letter emphasize that the drop is unlikely to reflect any long-term fundamental weakness in the sector. The sudden downturn was attributed to a convergence of temporary factors that intensified market stress. Among these were excessive leverage positions and heightened risk-taking by traders. Additionally, the announcement by then-US President Donald Trump of imposing 100% tariffs on Chinese imports further unnerved investors. This geopolitical development came during a

October 11, 2025

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AAVE Surges Back After 64% Flash Crash Amid Record DeFi Stress Test

The native token of Aave, AAVE, experienced a dramatic price plunge on Friday, marking one of the most significant flash crashes in the decentralized finance (DeFi) space. Despite a sharp drop, the protocol demonstrated robust stability by handling an unprecedented liquidation event without any operational disruptions. Earlier on Friday, AAVE traded near $270 before tumbling as much as 64% within hours, reaching an intraday low of $100 — a level not seen in over a year. The token then recovered swiftly, climbing back up to approximately $240 by the end of the session, resulting in an overall 10% decrease across