Crypto Liquidations Spike to $750M Amid Weekend Slide
Bitcoin faced increased selling pressure over the weekend, triggering $750 million in crypto liquidations—over 77% from long positions. After peaking at $95,400 last week, Bitcoin fell to $86,126 before rebounding slightly to around $87,700, down 1% for the day. Derivatives activity remains subdued, with open interest in a stable range since January 8. Spot and perpetual trading volumes are declining, indicating sustained selling. Market weakness is attributed to diminished interest from major investors and a fragile macroeconomic environment, notably driven by a financial crisis in Japan. A sharp bond selloff and rapid yen depreciation have intensified risk aversion, with speculation about potential intervention by Japanese and U.S. authorities. As a result, risk assets like Bitcoin are underperforming, while traditional safe havens are rising: gold is up 2.08% and silver 1.6%. Market sentiment has shifted, with traders now assigning a 33% probability that Bitcoin’s next major move will be down to $69,000 rather than up to $100,000, reflecting caution amid ongoing financial instability.
