Markets Rebound After Weekend Panic Selling
After a brutal $1.2 billion crypto market liquidation triggered by U.S. airstrikes on Iranian nuclear sites, Solana (SOL), XRP, and Dogecoin (DOGE) are leading a notable recovery among altcoins. The sharp weekend sell-off pushed Bitcoin (BTC) below $98,000, before it rebounded back above $102,000, reflecting improving sentiment.
Over $1.2 billion in leveraged positions were liquidated, with Bitcoin and Ethereum taking the biggest hits. The majority of the losses occurred Saturday night as geopolitical risks spooked investors.
Liquidation Storm Subsides
In the past 48 hours:
- Bitcoin saw $230 million in liquidated positions
- Ethereum lost $188 million
- Solana, XRP, and DOGE experienced liquidations of $28M, $21M, and $25M respectively
These forced closures—known as liquidations—occur when traders fail to maintain enough margin in their leveraged positions, leading exchanges to automatically sell assets to cover losses. Historically, large-scale liquidations signal extreme sentiment, often followed by price reversals.
By early Monday, key crypto assets showed signs of stabilization:
- BTC reclaimed $102K
- ETH traded near $2,260
- SOL hovered at $134
- XRP crossed above $2
- DOGE rebounded near $0.154
Institutional Confidence Boosts Recovery
Analysts suggest this swift recovery is backed by strong institutional demand, especially for tokens like Ethereum, which is buoyed by ongoing ETF inflows and use case expansion. Meanwhile, Solana and other Layer-1 chains benefit from rising developer activity and ETF optimism.
“Ethereum continues to attract institutional interest, while Solana and DOGE show resilience on network fundamentals,” noted Eugene Cheung, CCO at OSL.
Geopolitical Risks Still Loom
Despite signs of strength, geopolitical tension remains a threat. Any further escalation—particularly involving oil supply disruptions in the Strait of Hormuz—could rattle financial markets again.
However, current sentiment suggests the market believes the conflict’s impact will stay localized, allowing digital assets to regain upward momentum after a volatile weekend.
Altcoins have once again shown resilience amid macro pressure, reinforcing growing confidence in their long-term fundamentals despite short-term geopolitical shocks.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.