Crypto markets experienced a significant downturn over the weekend, with major tokens and high-beta altcoins suffering increasing losses. This decline comes amid a wave of futures liquidations triggered by ongoing weaknesses in Bitcoin.
Ether, the second-largest cryptocurrency, was particularly hard-hit, with approximately $385 million in liquidations over the last 24 hours—marking the most substantial losses among all digital assets. Bitcoin followed closely behind, with about $188 million in liquidations. The downturn was not confined to these two cryptocurrencies; Solana and XRP also faced notable liquidations, exceeding $45 million each, along with numerous smaller altcoins.
The liquidation data highlights a markedly one-sided selloff, primarily affecting long positions. This trend indicates that many traders had taken on bullish stances after a protracted period of stability and multiple attempts to capitalize on dips. In contrast, short liquidations were minimal, suggesting traders may have overexposed themselves on the upside while miscalculating market momentum.
Interestingly, the turmoil was not limited to traditional crypto assets. Tokenized commodities, such as blockchain-based silver contracts, experienced substantial liquidations as well, signaling that crypto markets are becoming increasingly intertwined with broader macroeconomic factors. This connection suggests that digital assets are being utilized as rapid trading instruments during times of market stress.
In total, around $974 million was liquidated in the past day, resulting in more than 240,000 traders being forced out of their positions. The price dynamics reflected this pressure, with Bitcoin drifting toward the low $80,000 range and Ether breaking through key short-term support levels. Altcoins exhibited even greater volatility, falling at an accelerated rate and underscoring their susceptibility to leverage fluctuations.
With market liquidity thinning over the weekend and risk appetite diminishing, this scenario appeared less like a moment of panic and more like a mechanical reset of positions. The future trajectory of the market will largely hinge on how quickly traders rebuild leverage when markets fully reopen, determining whether a stabilization period lies ahead or if further downturns may be in store.
