Crypto Market Tumbles as Traders Unwind Leverage and ETF Flows Reverse

The cryptocurrency market tumbled over the weekend, erasing billions in value after renewed worries over U.S. monetary policy sparked a wave of liquidations.

Bitcoin dropped under $106,000, while Ethereum fell to around $3,620, both losing more than 4% in 24 hours. Leading altcoins – including Solana, BNB, and XRP – slumped between 5% and 10%, marking one of the sharpest pullbacks in weeks.

Data from Coinglass showed more than $1.10 billion in leveraged positions wiped out in a single day, with longs making up the overwhelming majority. The largest single liquidation, worth nearly $34 million, took place on HTX’s BTC-USDT pair.

Analysts said the sell-off followed hawkish comments from Federal Reserve officials, who signaled that interest rates would likely remain elevated well into 2026. The prospect of tighter liquidity drove investors to take profits and move capital into safer assets.

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Adding pressure, Bitcoin ETFs – once a major source of inflows – recorded notable redemptions, led by BlackRock’s IBIT, which saw about $149 million leave last week. The decline in ETF participation points to cooling institutional appetite.

Broader economic worries, including concerns over U.S. fiscal negotiations and slowing global growth, further weighed on sentiment. Crypto “fear” indices flipped negative, ending a brief period of stability seen earlier this month.

Despite the downturn, analysts say Bitcoin’s $100,000 range remains a critical support zone that could steady the market if volatility eases. Still, without new inflows or clearer policy signals, traders expect more turbulence in the weeks ahead.