Bitcoin and Crypto Market Weekend Crash: The Real Reasons Behind the Plunge
Crypto markets just took a weekend nosedive—and the usual suspects are lining up. Forget the 'healthy correction' spin; this drop has traders scrambling for answers.
Liquidity Squeeze Hits Hard
Weekends always thin trading volumes. That means even moderate sell pressure can trigger exaggerated moves. When whales start offloading positions on a Saturday, the entire market feels the tremor.
Leverage Gets Liquidated
Over-leveraged positions amplify every dip. Margin calls cascade through exchanges, forcing automated sell-offs that push prices lower—a classic crypto feedback loop that turns a slide into a crash.
Traditional Markets Cast a Shadow
When stocks or commodities stumble on Friday, crypto often follows with a weekend lag. Nervous money pulls back across all risk assets, and digital currencies—still viewed as speculative—get hit first and hardest.
Regulatory Ghosts Return
Old regulatory fears don't disappear; they just wait for weak moments to resurface. A single negative headline can revive anxieties about crackdowns, sparking precautionary selling from institutions playing it safe.
Remember: weekend crashes often look worse than they are. Thin volumes distort price action, creating buying opportunities for those who keep their cool. The market's long-term trajectory rarely changes in two days—no matter how dramatic the charts appear. After all, if traditional finance were so stable, we wouldn't need Bitcoin in the first place.
Why Bitcoin And Crypto Prices Dropped This Weekend
Following Bitcoin’s initial descent to $81,000, different reasons, ranging from geopolitical tensions to the FOMC’s decision to keep the interest rates unchanged, swirled around. However, the continuous decline of prices, even during the typically sluggish weekend, suggests that other factors are at play.
In a new post on the social media platform X, prominent financial markets commentator The Kobeissi Letter weighed in on the possible reasons behind the market-wide downturn in recent days. According to the report, a look at the crypto flow data WOULD shed more light on this market conundrum.
According to The Kobeissi Letter, the recent price decline witnessed by the world’s largest cryptocurrency by market capitalization is completely a liquidity situation. As shown in the highlighted chart, Bitcoin has witnessed three well-defined liquidation waves, summing up to over $1.3 billion over the past day.
The financial markets commentator also mentioned that the crypto market liquidity has been choppy at best lately. However, sustained levels of extreme leverage in the Bitcoin market have caused the formation of “air pockets” in price.
The Kobeissi Letter added:
Couple this with herd-like sentiment, constantly shifting from extreme bullishness to extreme bearishness, and the swings become even more aggressive.
Unsurprisingly, the market-wide price correction saw the market hit with one of the largest liquidation events in crypto history. Market data shows that about $2.5 billion worth of levered longs have been liquidated in the digital asset market over the past 24 hours, the 10th-largest crypto liquidation event ever.
More notably, over $1 billion worth of levered long positions were forcibly closed within 5 minutes, as the bitcoin price fell to around $76,000 on Saturday.
Total Crypto Market Cap Down By 7%
As of this writing, the total cryptocurrency market capitalization stands at around $2.725 trillion, reflecting a nearly 7% dip in the past 24 hours.
