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BitMEX: "1011" Flash Crash Forces Market Makers to Hold Large Amounts of Cryptocurrency, Liquidity Hits Lowest Level Since 2022

21 hours ago

January 8, 2025 — Per CoinDesk, cryptocurrency exchange BitMEX noted in its latest report that the “1011” flash crash’s ripple effect hit market makers, forcing them to hold significant amounts of cryptocurrency. The crash triggered roughly $20 billion in cascading liquidations, undermining market makers’ neutral strategies and pushing market liquidity to its lowest level since 2022. BitMEX added that when the Auto-Deleveraging (ADL) mechanism activates and market makers’ hedging short positions are forcibly liquidated, these firms are left holding unhedged spot positions amid rapid market declines. This broke the “neutral strategy” promise of perpetual contracts, prompting market makers to pull liquidity globally in Q4 2025 — pushing order book liquidity to its lowest level since 2022. As a flood of imitators entered the space, Delta-neutral “easy yield” strategies (relying on funding rate arbitrage) have shrunk sharply, with annualized returns falling below 4%. Meanwhile, B-book platform models have raked in substantial profits, the DeFi perpetual contracts market remains prone to manipulation, and the traditional finance perpetual contracts market has seen explosive growth.
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A whale's liquidation of a $15.53 million USD ETH long position, resulting in a $616,000 USD loss.

On January 9, per monitoring from Hyperinsight, a whale closed out a $15.53 million ETH long position at 16:37, incurring a $616,000 loss. The whale currently still holds a 2x leveraged long position of 685,219.52 HYPE (≈$17.5 million) with an unrealized loss of $481,000. *Source: Hyperinsight*

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Binance Will List ZAMAUSDT Perpetual Futures for Trading Ahead of Time

Per official sources, Binance is set to launch ZAMAUSDT perpetual contract trading at 17:00 UTC+8 on January 9, 2026, with up to 5x leverage.

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Analyst: Crypto Market Still in Consolidation Phase, Institutional Demand Yet to See Structural Shift

On January 9, The Block reported that Bitcoin ETFs posted a net outflow of $398.95 million yesterday, pushing the cumulative net outflow over the past three trading days to $1.12 billion. Three consecutive days of outflows have nearly erased the net inflows from the first two trading days of the year. Nick Ruck, Managing Director at LVRG Research, noted: “The recent outflows from Bitcoin ETFs stem primarily from portfolio rebalancing, profit-taking on rebounds, and short-term caution amid market consolidation—not a fundamental shift in institutional demand. The crypto market remains in a sideways phase, with Bitcoin holding above $90,000, supported by potential ongoing institutional accumulation.” Ruck added: “Traders should closely monitor ETF fund flow trends, Bitcoin’s key resistance level around $95,000, and macro signals like shifts in Fed policy to assess potential breakouts or further volatility.”

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Coinbase Bitcoin Premium Index has been in negative premium for 3 consecutive days, currently at -0.0837%

**Jan. 9 — Coinglass data shows Coinbase’s Bitcoin Premium Index has traded at a negative premium for three straight days, currently sitting at -0.0837%. Over the past 26 days, the index has been negative for 25 of them.** *BlockBeats Note: The Coinbase Bitcoin Premium Index measures the gap between Bitcoin’s price on Coinbase (a top U.S. exchange) and the global market average. It’s a key indicator for tracking U.S. capital flows, institutional investment interest, and shifts in market sentiment.* - A **positive premium** (Coinbase price > global average) typically signals: strong U.S. buying pressure, active entry of institutional/regulated funds, ample USD liquidity, and broadly bullish investor sentiment. - A **negative premium** (Coinbase price < global average) often reflects: heavy U.S. selling pressure, fading risk appetite, rising risk aversion, or capital outflows.

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A whale liquidated a $13.8 million USD BTC long position, resulting in a $29,000 USD loss.

On Jan. 9, per HyperInsight (https://t.me/HyperInsight) data, a whale liquidated a $13.8 million BTC long position at 15:59, incurring a $29,000 loss. The address now holds no positions and is on the sidelines.

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White House Press Secretary Abruptly Ends Press Conference, Traders Make 50x Profits

On January 9, prediction platform Kalshi initially pegged the probability that White House Press Secretary Karoline Leavitt’s January 7 press briefing speech would hit or exceed 65 minutes at 98%. But Leavitt abruptly ended the briefing in the final seconds—and traders who bet “no” scored 50x returns in mere seconds.

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