What happened?
The crypto market rebounded, with total market capitalization rising 4.4% back to about $4 trillion and 97 of the top 100 coins higher as trading volume hit roughly $270 billion. Bitcoin climbed about 2.9% to $115,097 and Ethereum jumped 8.7% to $4,152, while many blue-chip tokens staged a strong recovery after a weekend flash crash. The weekend sell-off caused large liquidations and ETF outflows but also helped clear excessive leverage and reset short-term market risk.
Who does this affect?
Retail traders and anyone using heavy leverage were hit hardest by the weekend liquidations and feel the effects of the reset. Institutional investors and spot ETF holders saw volatile flows—US BTC and ETH spot ETFs recorded notable outflows—while big holders like MARA continued buying. Exchanges, market makers, and holders of top coins all face renewed volatility and changing liquidity conditions going forward.
Why does this matter?
Clearing excess leverage reduces immediate systemic risk and can set the stage for a healthier rally, but the recovery isn’t guaranteed. ETF flow volatility and ongoing geopolitical uncertainty mean liquidity can dry up quickly and swings may persist, keeping trading risk elevated. Traders and investors should watch key levels—BTC above $117k could push toward $124–126k, while a drop below $108k risks moves to $103k and even $98k—which will drive market direction and sentiment.