Bitcoin tumbled more than $6,000 in 24 hours while alternative cryptocurrencies suffered even steeper declines, pushing liquidations to nearly $900 million as investors anticipate significant losses in traditional markets when Monday trading begins.
What to Know:
- Bitcoin fell to a monthly low of $77,000 after trading above $88,000 just days earlier
- Nearly 300,000 traders have been liquidated in the past 24 hours, with total losses approaching $900 million
- Alternative cryptocurrencies experienced double-digit percentage losses, with Ethereum falling to its lowest level since October 2023
The weekend cryptocurrency rout follows what President Trump described as "Liberation Day," when his administration announced new trade policies that sent financial markets sharply lower.
Bitcoin initially showed resilience by decoupling from Wall Street on Friday, but the cryptocurrency's 24/7 trading environment exposed it to weekend selling pressure as investors positioned themselves ahead of what many expect to be a turbulent Monday trading session.
The leading cryptocurrency had maintained relative stability between $83,000 and $84,000 through most of the weekend before accelerating downward Sunday evening and into the Monday Asian trading session.
The decline established a monthly low at $77,000, representing a significant reversal from Wednesday when prices briefly surpassed $88,000.
Alternative cryptocurrencies, often referred to as "altcoins," experienced substantially steeper declines than Bitcoin. Ethereum, the second-largest cryptocurrency by market capitalization, plunged to approximately $1,500, reaching price levels not seen since October 2023.
The sell-off has been particularly severe across numerous prominent cryptocurrencies. XRP dropped 12% within a 24-hour period, falling below the $2 support level that many technical analysts had identified as critical. Some market watchers now suggest XRP could potentially decline further toward the $1.20-$1.30 range if current market conditions persist.
Double-digit percentage losses were widespread throughout the cryptocurrency ecosystem. Litecoin, SUI, TRUMP token, Dogecoin and numerous other cryptocurrencies all registered severe declines as the market-wide sell-off intensified.
Data from cryptocurrency analytics platform CoinGlass revealed the financial impact of these rapid price movements. Total liquidations exceeded $900 million within a 24-hour period, affecting approximately 300,000 traders.
The largest single liquidated position was valued at more than $16 million, underscoring the magnitude of losses experienced by some market participants.
The cryptocurrency market's decline occurs against a backdrop of broader financial uncertainty. President Trump's recently announced trade policies have created significant volatility in traditional financial markets, with that turbulence now spilling over into digital assets.
Market Analysis and Implications
Bitcoin's inability to maintain support above $80,000 has triggered technical selling pressure, compounding the impact of external market factors. The cryptocurrency had shown signs of establishing this level as a new support zone following its recent all-time highs, but weekend trading activity has undermined this technical structure.
Liquidations at this scale typically accelerate price movements as leveraged positions are forcibly closed, creating a cascade effect that can temporarily push prices below fundamental valuation models.
The concentration of liquidations within a compressed timeframe suggests many traders had positioned themselves for continued upward momentum.
The cryptocurrency market's response to traditional finance concerns highlights the ongoing correlation between digital assets and broader market sentiment, despite occasional periods of divergence. While Bitcoin briefly decoupled from stock market performance on Friday, the anticipation of Monday trading losses ultimately proved sufficient to trigger widespread selling.
Final Thoughts
The cryptocurrency market's nearly $1 billion in liquidations reflects heightened investor anxiety following President Trump's trade announcements. With Bitcoin at a monthly low and alternative cryptocurrencies experiencing even steeper declines, market participants now await Monday's traditional market opening to gauge whether further selling pressure will materialize.