A thinly traded weekend selloff that wiped out nearly $290 billion from global crypto market capitalization has exposed growing fragility in digital asset liquidity, even as bitcoin and ether found tentative support and broader risk appetite weakened across markets.
Bitcoin fell as low as $74,674 while ether dropped to $2,164 during the weekend rout, levels last seen between April and June last year, before both assets stabilized and clawed back roughly one percent since midnight UTC.
The recovery, however, has done little to ease concerns that low liquidity and excessive leverage are amplifying downside risks across crypto markets.
The selloff unfolded against a wider retreat from risk assets. According to Coindesk report, U.S. equity futures were lower in pre-market trading, with S&P 500 futures down 0.58 percent and Nasdaq 100 futures sliding 0.85 percent, while gold and silver retreated about 3.5 percent after hitting record highs last week.
Market stress was most visible in derivatives. Total crypto futures open interest fell to $108.94 billion, its lowest level since April and less than half the $223 billion peak reached in October, signalling a sharp pullback from leveraged positioning. More than $800 million in leveraged trades were forcibly closed in the past 24 hours, with the majority of liquidations hitting bullish long positions.
Open interest in bitcoin and ether futures dropped by over one percent and three percent respectively, while coins such as SOL, DOGE, SUI, ADA and LINK recorded increases, suggesting traders may be positioning for further downside through short bets. By contrast, ZEC, WLFI, TON, BCH and XLM showed net buying pressure, according to cumulative volume delta data, even as bitcoin and ether registered negative readings.
On the Chicago Mercantile Exchange, bitcoin futures opened sharply lower at $77,730, down from Friday’s close of $84,105, creating a price gap that traders often expect to be filled, a dynamic that could fuel a short-term rebound toward the $80,000 level.
Options markets, however, reflected persistent caution. On Deribit, demand for $75,000 bitcoin put options has surged to match interest in $100,000 calls, while heavy positioning in $80,000 and $70,000 puts points to sustained downside hedging.
Altcoins bore the brunt of the selloff as low liquidity exaggerated price swings. More than $300 million worth of ether-linked positions were liquidated over the past 24 hours, while several tokens posted steep weekly losses.
Dash has fallen 25 percent over the past week, while OP, SUI, XTZ and ether are each down more than 20 percent over the same period.
One exception was HyperLiquid’s HYPE, which gained more than 40 percent over the past week and rose 13 percent from Saturday’s low, buoyed by increased trading activity linked to volatile precious metals markets. Jupiter’s JUP also rebounded, rising 7.9 percent since midnight UTC after plunging nearly 25 percent over the weekend.
Market commentators say the episode highlights structural vulnerabilities in crypto trading. Low market depth, particularly over weekends, means sudden shifts in sentiment can trigger cascading liquidations when large orders hit thin order books, turning modest declines into sharp selloffs.
The turmoil has also drawn renewed scrutiny from traditional market voices.
CNBC host Jim Cramer questioned the resilience of bitcoin’s bullish base after prices slid toward $74,000, describing the move as a reminder of the asset’s volatility and limitations as a short-term currency.
He flagged $73,000 as a critical support level and said bitcoin must reclaim $77,000 to form a “launching pad” for a move back into the low $80,000s.
Cramer also warned that crypto losses can spill into other asset classes, as leveraged traders liquidate positions in equities and metals to raise cash, potentially deepening stress across risk markets.
While bitcoin’s ability to stabilize after the weekend shock may reassure some investors, the sharp contraction in leverage, rising demand for downside protection and outsized altcoin losses suggest that market confidence remains fragile and that crypto’s next move may hinge less on spot buying and more on how derivatives traders manage risk in the days ahead.