Crypto Markets Snapshot: Futures Struggle With Outflows as WLFI Seeks to Reassure Participants

Gold Tops $3,500 as Crypto Futures See $370M in Liquidations; WLFI Faces Pressure After Chaotic Launch

Gold climbed to a record high above $3,500 an ounce on Tuesday, reinforcing safe-haven demand as bitcoin (BTC) traded quietly around $110,752. Beneath the surface, crypto derivatives saw sharp dislocations, with exchanges liquidating $370 million in futures positions after bearish bets were caught off guard.

Blockchain data from Lookonchain showed whale address 0xFf15 sold 425 BTC—worth $46.5 million—in exchange for more than 10,500 ETH over four days. Meanwhile, Glassnode reported that long-term bitcoin holders spent 97,000 BTC on Friday, signaling heightened profit-taking.

Derivatives Update

The liquidation wave cut open interest (OI) across most top tokens, except BTC, where OI rose more than 1% on fresh inflows. XRP posted a “spinning bottom” candle, though its perpetual OI in USD and USDt contracts dropped 5.69% amid weak spot demand.

Funding rates for BTC, ETH and other majors hovered just above zero, reflecting a slight long bias. CME positioning in BTC futures remained thin, while ether futures held near-record OI at 2 million contracts.

Options activity leaned defensive. On Deribit, BTC puts traded at a premium through December expiry, while ETH showed a softer put skew. By contrast, SOL and XRP options reflected stronger appetite for upside exposure. Block flows highlighted bearish hedging, with BTC traders lifting $105K puts for September and selling $135K calls for October. ETH traders focused on $3,800 and $4,200 puts.

WLFI Struggles for Stability

World Liberty Financial (WLFI), the Trump-affiliated DeFi project, announced a buyback-and-burn plan to rebuild confidence after a troubled debut. Fees from liquidity pools on Ethereum, Binance Smart Chain, and Solana would fund token repurchases, which would then be permanently destroyed to engineer scarcity.

WLFI trades at $0.23 with a $6.39 billion market cap—down 24% on the day and far below launch-time futures valuations above $40 billion. A governance proposal also seeks to stake 80% of locked supply into pools, rewarding participants with tokens from a 20% reserve. Supporters call it a way to activate idle assets; critics label it cosmetic.

The launch has been clouded by hacks and scams. Attackers exploited Ethereum’s EIP-7702 delegate contract feature in phishing-style attacks, draining wallets and leaving victims with only partial holdings. Security firm SlowMist warned the exploit triggers as soon as transfers are attempted. Scam clones and phishing links across Telegram and X compounded retail losses, underscoring WLFI’s fragile early trajectory.