Bitcoin’s rapid rise to $106K and quick fall to $103K takes both bullish and bearish investors by surprise.

Weekend Bitcoin Rollercoaster Triggers Over $600M in Crypto Liquidations Amid Market Uncertainty

Bitcoin experienced dramatic price swings late Sunday, surging past $106,000 before swiftly falling back to near $103,000, catching both bulls and bears off balance. This volatility resulted in over $600 million in liquidated futures positions, including $460 million in longs and $220 million in shorts, affecting top cryptocurrencies like Ether (ETH), Solana (SOL), and Dogecoin (DOGE).

The price jump started around 21:00 UTC Sunday, with Bitcoin climbing more than $2,500 within an hour—a move likely fueled by low weekend liquidity and algorithmic trading hitting critical technical levels. This sparked a classic short squeeze, forcing traders betting against Bitcoin to buy back positions rapidly, driving the price higher before a sharp reversal as profit-taking set in.

Notably, this wave of liquidations occurred during the normally quiet weekend period, signaling possible large-scale forced trades or automated selling/buying by major market participants.

Following the turbulence, SOL, DOGE, and XRP prices dropped more than 4% over the past 24 hours, with the broader CoinDesk 20 index down over 2%, reflecting increased market caution.

This episode comes amid heightened macroeconomic concerns, including Moody’s recent downgrade of the U.S. credit rating and resurging inflation fears sparked by mixed economic data. The downgrade also pushed U.S. 30-year Treasury yields above 5%, further stoking risk-off sentiment.

While Bitcoin has seen fresh institutional interest and ETF momentum, experts warn that the failure to hold above the $106,000 resistance level may limit near-term gains. FxPro analyst Alex Kuptsikevich noted Bitcoin’s flat performance over the last week as a sign of potential resistance.

Looking ahead, volatility is expected to remain elevated as investors navigate ongoing uncertainties around U.S. fiscal policy and trade negotiations. Haiyang Ru, co-CEO of HashKey Business Group, commented, “Bitcoin continues to attract capital amid concerns over U.S. debt, but traders should prepare for swings as new fiscal policies and trade deals come into focus.”