Bitcoin’s price rollercoaster this weekend sent shockwaves through the cryptocurrency markets, leaving both bulls and bears scrambling to adjust. On late Sunday night, Bitcoin surged past $106,000, only to retreat to $103,000 shortly thereafter, resulting in the liquidation of over $600 million in crypto derivatives positions. This unexpected move unfolded against a backdrop of thin weekend liquidity and algorithmic trading, highlighting the market’s inherent volatility.
A Wild Weekend for Bitcoin
Sunday’s dramatic price action began around 21:00 UTC, when Bitcoin rapidly climbed over $2,500 within an hour. According to industry insiders, this spike was likely driven by a combination of low liquidity during off-peak trading hours and automated buying algorithms responding to technical indicators. The surge was a textbook short squeeze, forcing traders who had bet against Bitcoin to buy back their positions, thereby pushing the price even higher. This follows a pattern of institutional adoption, which we detailed in Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow.
Analysts noted that the subsequent drop back to $103,000 was marked by aggressive profit-taking and stop-runs, a strategy where traders force the market to move by triggering stop orders. This volatile dance led to the liquidation of over $460 million in long positions and $220 million in short positions across major cryptocurrencies like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE).
Market Sentiments and Macro Influences
The sudden price fluctuations occurred during what is typically a quiet period for crypto trading, underscoring the impact of strategic moves by significant market players. SOL, DOGE, and XRP all saw declines of more than 4% over the past 24 hours, contributing to a 2% drop in the CoinDesk 20 index.
This volatility comes amid broader economic concerns. Last week, Moody’s downgraded the U.S. credit rating, leading to a rise in 30-year Treasury yields past the 5% mark. These developments, coupled with resurfacing inflation fears, have created an atmosphere of uncertainty in the financial markets, spilling over into crypto. For more on the interplay between Bitcoin and market perceptions, see Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception.
Despite the turmoil, there’s a silver lining: renewed institutional interest and momentum around spot ETFs have buoyed the broader crypto landscape. “Investors are shifting capital to Bitcoin as concerns grow over a pending US spending bill that could add trillions in debt and push for higher Treasury premiums,” noted Haiyang Ru, co-CEO of HashKey Business Group. Ru added that while Bitcoin flirts with new highs, the market should brace for further volatility as traders eye upcoming trade deals and fiscal policies.
Looking Forward
Bitcoin remains flat over the past week, despite the recent price swings. The inability to maintain levels above $106,000—a crucial psychological and technical threshold—could signal resistance ahead, as highlighted by FxPro’s Alex Kuptsikevich. Meanwhile, traders are on edge, anticipating increased volatility in the days ahead.
With the U.S. economy facing potential fiscal changes, and the crypto market’s unpredictable nature, questions loom about Bitcoin’s trajectory. Will it break past current highs, or are further corrections on the horizon? As traders adjust their strategies, one thing is clear: the crypto market is anything but predictable.
As we move into June 2025, market participants will keep a close watch on macroeconomic indicators and regulatory developments that could influence Bitcoin’s path. For now, the market remains a thrilling—if nerve-wracking—ride for those daring enough to stay the course.
Source
This article is based on: Bulls and Bears Get Caught off Guard as Bitcoin Jumps to $106K, Then Falls Back to $103K
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
