The crash was caused by a perfect storm of short-term factors, causing $20 billion in liquidations — the worst 24-hour drain in crypto history. The sudden market crash on Friday, which caused some cryptocurrencies to decline by as much as 95% in under 24 hours, does not signal a long-term bearish outlook or deteriorating fundamentals, according to investment analysts at The Kobeissi Letter. Friday’s market meltdown was triggered by a perfect storm of short-term factors, including “excessive leverage and risk,” and US President Donald Trump’s announcement of 100% tariffs on China, the analysts wrote. The Kobeissi letter cited the market’s heavy long bias, with $16.7 billion in long positions liquidated compared to just $2.5 billion in short positions, a ratio of nearly 7:1. Read more
The selling in Bitcoin and altcoin is not over yet, but data suggests that the nature of the CME Bitcoin and equities futures market open on Sunday will determine the direction BTC price takes. Key points: A sharp reduction in aggregate open interest highlights the severity of the $20 billion in leveraged liquidations and highlights traders’ reluctance to re-enter the market. Bitcoin selling and price weakness are likely to extend until CME BTC and equities futures markets open on Sunday evening, US hours. Read more
Some altcoins lost over 95% of their value during Friday’s crash, which triggered the most severe and rapid liquidations in crypto history. Ether (ETH), the native cryptocurrency of the layer-1 Ethereum blockchain network, is down about 6.7% in the past 24 hours, following Friday’s market crash, showing greater price resilience than many altcoins, which crashed by over 95% in some cases. The market crash sparked by US President Donald Trump’s tariff announcement took the price of ETH down to a low of about $3,510 on Friday, a decline of over 20% in a single day. Price tapped the 200-day exponential moving average (EMA), a dynamic support level, before rebounding to over $3,800. The relative strength index (RSI) is also at 35, nearing oversold conditions, signaling a potential reversal to the upside. Read more
The provision in the National Defense Authorization Act could create even more economic pain for the crypto mining industry if passed. The US Senate has advanced sweeping AI legislation under the National Defense Authorization Act, compelling chipmakers to serve US customers first before exporting advanced processors abroad. On Thursday, senators passed the Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2026, or GAIN Act, as an amendment to National Defense Authorization Act, requiring AI and high-performance chipmakers to prioritize domestic orders before exporting their products. The GAIN Act also gives Congress the right to deny export licenses for the most high-end AI processors and mandates export licenses for all products containing an “advanced integrated circuit.” “Over the past several years, US firms have faced regular backlogs in purchasing chips. In late 2024, Nvidia’s Blackwell line was booked out roughly 12 months ahead,” according to policy advocacy group “Ameri...
After yesterday's multibillion dollar leveraged crypto wipeout, traders are licking their wounds — but those who cannot remember the past are condemned to repeat it. I’m not your mother, your priest, or Gary Gensler. I’m not going to tell you that you shouldn’t use 50x leverage gambling on lower-liquidity altcoins on a centralized crypto exchange, because you are a human adult in the year 2025, and you can gamble whatever the hell you care to gamble. But I do have one word of advice, and you can take it or leave it. Read more
ZEC recovered all its value lost during Friday's market meltdown and also hit a recent high of $291 before dipping to the $270 level. The price of Zcash (ZEC), a supply-capped, shielded, layer-1 coin dedicated to user privacy, fully recovered following Friday’s market crash, forming a new recent high of about $291 on Saturday before retracing to about $273 at the time of this writing. Zcash plummeted by 45% on Friday, falling from a high of about $273 to $150, following a social media post from United States President Donald Trump announcing 100% tariffs on China, which sent the crypto markets into a meltdown. ZEC is only down about 5.5% from its recent high, making it a standout in this market crash. Many cryptos are still down by double digits from their recent highs, including Ether (ETH), which is down by about 22% from its recent and all-time high of $4,957. Read more