The crypto market remained under pressure Thursday, with Bitcoin (BTC) holding below the $80,000 mark after a hotter-than-expected U.S. Producer Price Index fueled inflation fears. The largest digital asset was trading near $79,800, down from its weekly open of $82,500.
Derivatives markets showed significant stress. Liquidations surged 68% to nearly $400 million, with long positions bearing the brunt of the losses. Bitcoin alone saw $117 million in liquidations, $102 million of which were longs, indicating a heavily one-sided bullish market that was caught off guard. The Altcoin Season indicator dropped to 43/100, reflecting a broad risk-off mood. Ethereum's open interest hit a record high of 15.42 million tokens, yet its cumulative volume delta remained negative, pointing to persistent sell pressure. Altcoins suffered heavily, with the CoinDesk Memecoin Select Index falling over 4%. The $75,000 strike Bitcoin put option expiring May 29 became the most actively traded contract on Deribit, signaling increased demand for downside protection.