Crypto Pills

Bitwise portfolio manager examines a Friday crypto market meltdown that wiped out roughly $20 billion in value. The assessment focuses on drivers of the selloff, the interplay between liquidity and leverage, and implications for portfolio risk management under fast, disorderly conditions.

Ethena’s synthetic dollar USDe briefly drops below its dollar peg during a $19 billion crypto liquidation cascade. The move highlights stability pressures on pegged assets when leveraged positions unwind quickly and market conditions turn illiquid and volatile.

Auto‑deleveraging on crypto perpetual futures platforms forcibly reduces trader positions to maintain platform‑wide risk controls during sharp volatility. The mechanism can affect even advanced users when large liquidations cascade through markets, unexpectedly altering exposure or closing positions without manual action.

Speculation emerges about a potential U.S. presidential pardon for Binance founder Changpeng “CZ” Zhao. Attention centers on how clemency could affect CZ’s legal exposure and what such a move might signal for regulatory dynamics surrounding Binance and the broader crypto industry.

Bitcoin, Ethereum and Dogecoin drop sharply amid a record $19 billion in crypto liquidations. The broad downturn reflects widespread unwinding of leveraged positions that accelerates price declines across major tokens and intensifies market volatility.