Crypto Markets Regain Footing After $1B Liquidation Spree; Bitcoin Rebounds Above $101K
Crypto markets are finding stability after a chaotic weekend in which U.S. airstrikes on Iranian nuclear facilities sparked widespread panic selling and over $1 billion in liquidations. Bitcoin, which briefly plunged below $100,000, has rebounded above $101,000 as risk appetite cautiously returns.
Altcoins Show Signs of Life
Solana (SOL), XRP, and Dogecoin (DOGE)—three of the hardest-hit altcoins—are beginning to recover as traders recalibrate leveraged positions and spot buying picks up.
By Monday, Ethereum (ETH) was trading near $2,236, SOL hovered around $133, XRP held above $2, and DOGE was back around $0.15. Although prices remain lower on the daily charts, the bounce suggests buyers are eager to capitalize on discounted levels, particularly institutional investors who continue to accumulate select tokens.
Liquidations Ease as Markets Settle
In the last 24 hours alone, crypto markets absorbed another $642 million in liquidations, on top of the $595 million cleared out on Saturday, pushing the two-day total past $1.2 billion.
Bitcoin led the way with $230 million in liquidated positions, followed by ether at $188 million. SOL saw $28 million wiped out, XRP $21 million, and DOGE over $25 million.
Liquidations occur when exchanges forcibly close a trader’s leveraged position because losses have eroded their collateral below required levels. Such waves often signal extreme market conditions and can precede sharp price reversals as sentiment overextends.
The selling was triggered late Saturday after former U.S. President Donald Trump confirmed strikes on Iran’s key uranium sites. Yet despite the geopolitical shock, the markets have since stabilized, reflecting traders’ belief that a broader regional conflict remains unlikely for now.
Analysts Highlight Altcoin Strength
“While bitcoin’s volatility has dominated headlines, altcoins are showing impressive resilience,” said Eugene Cheung, Chief Commercial Officer at OSL, in a Telegram message.
Cheung pointed out that Ethereum continues to draw institutional inflows thanks to growing interest in ETFs, while Solana and other Layer 1 networks are benefiting from rising developer activity, improved network metrics, and speculation over potential ETF approvals.
Other market watchers say the swift rebound highlights optimism that geopolitical tensions will stay contained.
“The market seems confident that the Iran-Israel conflict will remain limited and its economic fallout contained,” said Jeff Mei, COO at BTSE.
Mei added, “We expect Iran will need to respond to maintain domestic credibility, but any retaliation is likely to be measured to avoid triggering a wider war.”
Still, uncertainties remain. The U.S. has warned of “far greater” military responses if Iran retaliates, and any significant disruption to oil shipments through the Strait of Hormuz could roil global markets.
Despite these risks, the speed of the crypto recovery suggests the broader uptrend remains intact. Many analysts view liquidation-driven dips as attractive entry points for longer-term investors.
