Bitcoin (CRYPTO:BTC) has dipped below $57,000, marking its lowest price since February amid a significant sell-off that saw $305.43 million liquidated across crypto derivatives exchanges.

Analysts attribute the downturn partly to anticipated large-scale bitcoin sales from entities like the German government and Mt Gox.

Despite this bearish sentiment, the options market remains surprisingly optimistic, with heavy interest in Ethereum (CRYPTO:ETH) calls for September and December expiries noted by QCP Capital.

The market dynamics suggest potential short squeezes amid liquidation clusters skewed to the topside, especially for BTC and ETH positions.

Amid the volatility, over 121,992 traders faced liquidations, underscoring the current market stress and potential for further price fluctuations.