Bitcoin’s Sharp Weekend Spike and Drop Triggers $600M in Liquidations Across Crypto Markets
Over the weekend, Bitcoin’s price action caught traders off guard as it surged above $106,000 before quickly retreating to around $103,000, sparking massive liquidations across the crypto futures market. More than $600 million in positions were wiped out, including $460 million in longs and $220 million in shorts, affecting major altcoins like Ether (ETH), Solana (SOL), and Dogecoin (DOGE).
The price rally began late Sunday at 21:00 UTC, with Bitcoin climbing over $2,500 within an hour. This move was likely driven by thin weekend liquidity and algorithmic trading hitting key technical levels, resulting in a classic short squeeze that forced bearish traders to buy back positions at elevated prices. The swift reversal afterward led to aggressive profit-taking and stop losses triggering further volatility.
Unusually, these liquidations took place during typically low-volume weekend hours, indicating the involvement of a significant market participant or algorithmic trading activity.
Following this volatility, SOL, DOGE, and XRP prices fell more than 4% over 24 hours, while the broader CoinDesk 20 index dropped over 2%, mirroring risk-off sentiment across markets.
This turbulent price action comes amid growing macroeconomic concerns, including Moody’s downgrade of the U.S. credit rating and renewed inflation worries after mixed economic reports. The downgrade also pushed the U.S. 30-year Treasury yield above 5%, amplifying risk aversion in financial markets.
Though Bitcoin has benefited from recent institutional inflows and spot ETF momentum, analysts warn that its failure to hold above $106,000 could signal resistance ahead. Alex Kuptsikevich of FxPro noted that Bitcoin’s flat weekly performance points to possible near-term challenges.
Market watchers expect elevated volatility in the days ahead as investors weigh uncertainties surrounding U.S. fiscal policy and upcoming trade negotiations. Haiyang Ru, co-CEO of HashKey Business Group, remarked, “Bitcoin remains attractive amid fiscal concerns, but traders should brace for volatility as final fiscal policy details and trade deals unfold.”
