- Bitcoin plummeted from $122k to below $110k late Friday in one of the heaviest weekend crashes, which saw some alts drop over 90%.
- The crash triggered funding rates to fall to their lowest levels since the 2022 bear market, indicating a massive unwinding of leveraged positions across crypto markets.
- Analysts attribute the drop to Trump’s tariff announcements during low-liquidity hours rather than fundamental weakness, viewing it as a technical correction.
- Prominent figures like Alex Becker and Raoul Pal remain bullish, with some suggesting this could mark the start of a larger bull run with a V-shaped recovery ahead.
Investors who switched off from crypto over the weekend for some well-deserved time away from the charts may have looked at CoinMarketCap or CoinGecko Monday morning and had a bit of a shock.
Late Friday Australian time, the market suffered one of the heaviest crashes – with some altcoins dropping as much as 90%. Bitcoin dropped from around US$122k (AU$187k) to just below US$110k (AU$168.6k) on Sunday, a whopping 10%. By the time of writing it has made its way back up to around US$114k (AU$174.7k), recovering some of the losses.
Most other assets, some with losses well into double digits, also bounced back — including BNB, which rallied more than 14% following platform disruptions that caused major depegs.
According to an analysis by Glassnode, the crash pushed funding rates to their lowest point since the 2022 bear market, signalling a massive unwinding of leverage across crypto markets. The data shows one of the sharpest reductions in speculative positioning on record, suggesting that excess risk-taking has been largely flushed out of the system.
While the crash and subsequent recovery were largely attributed to President Trump’s tariff spat with China — the familiar on-and-off tit-for-tat — the bigger question is: where to next?
Naturally, fear returned to the market but has since been trending back towards a more neutral stance.
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Nothing’s Changed Fundamentally, Say Analysts
The Kobeissi Letter attributed the sudden market drop to a mix of short-term technical factors rather than fundamental weakness. It noted that the timing of Trump’s announcement — late Friday, when liquidity is low — amplified volatility and triggered outsized price swings.
Despite the crash, the analysts maintained a positive outlook, viewing it as an overdue correction and expressing confidence that a trade deal will eventually support a market rebound.
Others, like YouTuber and crypto trader Alex Becker, actually believe this could be the start of a larger bull run. In a video posted over the weekend, Becker said:
I think there’s a very high chance this is the start of the bull market […] I think selling right now could be the stupidest thing you could ever do.
Alex BeckerCrypto-guru Raol Pal said that the flash crash will quickly reverse and a “V-shaped” recovery will follow:
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