The crypto market plunged sharply over the weekend, triggering a wave of forced liquidations that wiped out more than $2.5 billion in leveraged positions as prices sank across major assets including Bitcoin (BTC), Ethereum (ETH)and XRP. The sell-off underscored how quickly speculative positions can unwind in a risk-off environment.
Bitcoin led the downturn, dipping toward $77,000, its lowest levels in roughly nine months and marking a steep correction from its late-2025 peak above $126,000. Ethereum also slid hard — down more than 10 % in a day and roughly 20 % on the week, while XRP posted significant losses as traders de-risked.
The market decline wasn’t isolated to these three — most major altcoins felt the pressure as traders rushed to exit leveraged positions, deepening the sell-off across crypto markets.
The crash triggered approximately $2.53 billion in liquidations across global crypto derivatives markets. The vast majority — about $2.41 billion — came from long positions, where traders bet on rising prices.
Ethereum traders were the most impacted, suffering more than $1.1 billion in liquidations.
Bitcoin accounts saw roughly $765 million wiped out.
Liquidations occur when leveraged positions fall below required collateral levels, automatically closing out trades and often amplifying price moves as stop-loss orders cascade.
Analysts say several macro-economic drivers may have contributed to the sell-off:
Continued risk-off sentiment amid uncertain economic data and geopolitical concerns.
Broader financial market weakness that pressured risk assets like equities and crypto.
Unsettled expectations around monetary policy and inflation dynamics.
The collapse wasn’t confined to BTC, ETH and XRP — tokens like Solana, Dogecoin and other prominent alts also posted sharp drops, reflecting wide-ranging risk aversion.
With key technical support levels broken, analysts and traders are watching for:
Whether Bitcoin stabilizes near current levels or tests lower supports.
How broader markets — equities and macro indicators — influence crypto sentiment.
The pace of leveraged trading shrinking or growing in response to volatility.
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