The cryptocurrency market experienced a dramatic deleveraging event over the past weekend, triggered by a significant slide in Bitcoin’s (BTC) price. Data indicates that nearly $750 million in leveraged positions were liquidated across major futures and derivatives exchanges, making it one of the largest single-day liquidation spikes since the beginning of the year.
The volatility was primarily driven by Bitcoin’s drop below the critical psychological and technical support level of $65,000. BTC faced heavy selling pressure late Friday and throughout Saturday, briefly touching lows around $64,500 before a slight recovery on Monday morning.
Market analysis shows that the vast majority of the pain was absorbed by optimistic traders, with long positions accounting for approximately 85% of the total liquidations (over $635 million). This confirms that the market had become heavily overleveraged on the expectation of continuing price momentum toward new all-time highs.
The downturn was exacerbated by a confluence of factors, including rising macroeconomic uncertainty and a cooling of enthusiasm surrounding the potential for imminent interest rate cuts by the U.S. Federal Reserve. Furthermore, altcoins followed Bitcoin’s lead, with key assets like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) recording sharp double-digit percentage losses, contributing to the overall liquidation cascade.
While large liquidation events often serve to reset an overheated market, analysts are cautious about the immediate recovery prospects. For a sustained upward trend, Bitcoin will need to decisively reclaim and stabilize above the $68,000 level to restore bullish momentum.
Source: Crypto Liquidations Spike to $750M Amid Bitcoin’s Weekend Slide
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