'Absolutely Insane': Bitcoin Weekend Crash Exposes Cracks in Crypto Boom
Bitcoin experienced a sharp weekend decline that traders described as "absolutely insane," sparking sizable liquidations across derivatives markets and dragging most altcoins lower. The abrupt drop erased a portion of January gains as margin calls and funding-rate pressure widened the price disconnect between spot and futures venues.
The episode highlights persistent structural risks: elevated leverage, concentrated holdings, and fast ETF-driven flows that may amplify swings instead of dampening them. For investors and platforms this raises questions about liquidity during stress and the durability of fresh inflows; regulators and lenders will likely watch for contagion in smaller venues. Market participants will be watching volume, funding rates and ETF flows for signs of stabilization or further downside.