The cryptocurrency market recently experienced a significant downturn, marked by a substantial sell-off over the weekend that saw major digital assets, particularly Bitcoin, facing steep declines and setting several unprecedented records. This turbulent period has led to widespread liquidations and raised concerns about the continuation of the multi-year bull cycle.
Market Meltdown and Record Liquidations
The sell-off initiated on Friday due to macroeconomic concerns, triggering a sharp decline in Bitcoin's value from approximately $122,600 to $107,000, with declines continuing through Saturday. This market contraction resulted in the total crypto market capitalization falling to $3.76 trillion, accompanied by an astonishing $19.36 billion in liquidations across digital assets, marking the largest crypto liquidation event in history. Most crypto assets, including Bitcoin, continued to trade down, reflecting widespread losses and a significant shift in market sentiment.
Bitcoin's Unwanted Records and Crucial Support
Amidst the dramatic price collapse, Bitcoin established new, albeit undesirable, records. It printed its first-ever $20,000 red daily candle, a stark indicator of the rapid decline. Simultaneously, the futures market witnessed its largest single-day open interest wipeout in history, with over $11 billion in positions cleared, signaling massive deleveraging and substantial losses for many traders. The immediate focus now shifts to the critical $100,000 support level; a sustained close below this point could potentially signify the end of the three-year bull cycle, a sentiment echoed by high volumes of "put" options at the $110,000 and $100,000 price points.
