Crypto-tracked futures have suffered staggering losses surpassing $538 million in the past 24 hours, according to Coinglass data. The turbulent journey began as Bitcoin (BTC) surged past $68,000 only to face a sudden downturn.

Bitcoin and Ether briefly reached heights of $68,500 and $3,700, driven by the euphoria surrounding multiple catalysts last week. However, the elation was short-lived as Bitcoin plummeted to $64,500 before making a recovery to the $67,000 level.

Long positions, reflecting bets on higher prices, bore the brunt of the market turmoil, losing over $240 million. Simultaneously, short positions, representing bets on lower prices, saw a staggering $320 million evaporate into thin air.

Futures tracking Dogecoin (DOGE), Shiba Inu (SHIB), and Pepecoin (PEPE) collectively shed $90 million across exchanges. This move raises eyebrows, especially considering the recent surge in bullish bets on DOGE, contributing to its remarkable 92% weekly climb.

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Bitcoin Volatility Index Surges

Crypto exchange Deribit's Bitcoin volatility index, DVOL, has seen a substantial surge. DVOL acts as a measure of market participants' expectations regarding price movements over the next 30 days. 

The 30-day implied volatility index has experienced a noteworthy ascent from an annualized 41% to 76% within a month, reaching levels not seen since November 2022, as reported by TradingView. This rise in implied volatility positively influences the prices of options or derivative contracts, providing buyers with the right to buy or sell the underlying asset later.

As implied volatility rises, savvy investors adopt strategies such as overwriting and selling call options.

Bitcoin is currently trading at $66,679, up 2.6% in the last 24 hours.