The cryptocurrency market experienced significant turbulence as over $900 million in leveraged positions were liquidated, primarily affecting long positions. Bitcoin's price fell to around $110,000, contributing to heightened volatility in derivatives markets. This comes ahead of key US economic data releases, with traders seeking risk-averse strategies. Data from CoinGlass indicates a surge in short-term volatility, with Bitcoin and Ethereum's daily volatility increasing to 38% and 70%, respectively. Analysts highlight concerns over macroeconomic factors, including recent US Producer Price Index data. The options market reflects increased demand for downside protection, with a negative 25-delta skew and rising put option interest. Market sentiment suggests potential retests of $100,000 for Bitcoin and $4,000 for Ethereum by September's end.