cpeditor
Crypto Markets Steady After $1B Liquidation Wave as Bitcoin Regains $101K
Crypto markets are finding their footing following a turbulent weekend marked by U.S. airstrikes on Iranian nuclear facilities and over $1 billion in liquidations that rattled traders and sent bitcoin briefly below the six-figure mark.
After plunging under $100,000 on Sunday, bitcoin has rebounded, trading around $101,237 on Monday as panic selling eased and buyers stepped back in.
Altcoins Show Signs of Recovery
Among altcoins, Solana (SOL), XRP, and Dogecoin (DOGE)—which suffered some of the steepest losses—are starting to recover as leveraged positions are unwound and spot buying resumes. As of Monday afternoon, ether (ETH) hovered near $2,236, SOL traded at $133, XRP was above $2, and DOGE hovered around $0.15.
Though daily charts still reflect losses, the rebound signals that dip buyers, including institutional players, are stepping in quickly. Analysts believe growing use cases and institutional flows are helping certain tokens bounce back faster.
Liquidations Eased But Risks Remain
Over the past 24 hours, crypto markets absorbed an additional $642 million in liquidations, adding to the $595 million wiped out on Saturday. This brings the two-day liquidation total to more than $1.2 billion.
Bitcoin led the liquidations with $230 million in wiped-out positions, followed by ether at $188 million. Solana saw $28 million in liquidations, XRP faced $21 million, and DOGE over $25 million.
Liquidation occurs when an exchange forcibly closes a trader’s leveraged position because losses have depleted the trader’s collateral below required margin levels. Such cascades often happen during market extremes and can trigger sudden price reversals when sentiment swings too far in one direction.
The latest sell-off was sparked late Saturday after former U.S. President Donald Trump confirmed coordinated strikes on Iran’s uranium enrichment sites. Despite geopolitical tensions, markets appear to be stabilizing as investors weigh the likelihood of broader escalation.
Market Optimism Amid Geopolitical Tensions
“While bitcoin’s volatility has captured headlines amid the U.S.-Iran escalation, the altcoin market is showing notable resilience,” said Eugene Cheung, Chief Commercial Officer at OSL, in a Telegram message.
Cheung noted that Ethereum continues to attract significant institutional interest due to rising ETF inflows, while Solana and other Layer 1 tokens benefit from increased developer activity, growing network use, and speculation around potential ETF approvals.
Others attribute the market’s swift rebound to confidence that geopolitical risks will remain contained.
“The market is fairly optimistic that the Iran-Israeli conflict will remain muted and its economic impact will be locally contained,” said Jeff Mei, COO at BTSE.
Mei added, “We expect Iran will engage in some retaliatory measures to maintain regime credibility, but these are likely to be limited to avoid dragging multiple parties into a prolonged conflict.”
Still, risks linger. The U.S. has warned of “far greater” military responses if Iran retaliates, and any significant disruption of oil flows through the Strait of Hormuz could ripple across global markets.
Yet, the rapid pace of recovery suggests crypto markets remain in a broader macro uptrend. Some analysts view liquidation-driven dips as attractive entry points for longer-term investors.
