Highest Crypto Volatility Since FTX Crash Shows Market Fragility

Bitcoin’s worst bout of volatility since the collapse of crypto exchange FTX is exposing a fragile market where failed rebounds are triggering fresh cycles of forced selling.

The token whipsawed again on Friday after sliding more than 50% from its October peak, briefly touching $60,033 before snapping back above $67,000. Rather than helping confidence, the move underscores a feedback loop that’s taken hold: shallow rallies are drawing in tentative dip buyers who are then flushed out whenever prices reverse. That, in turn, is draining liquidity further and reinforcing the pattern.

Stress has centered on the perpetual futures market ever since ...