After a bruising week for markets, the weekend delivered a full-blown crypto washout.

Bitcoin slid relentlessly through thin weekend liquidity, briefly dipping into the low $74,000s before clawing its way back toward $76,000. Ether saw even heavier damage, falling below $2,200 at one point, while most large-cap altcoins followed lower. 

With traditional markets closed and institutional desks sidelined, shallow order books amplified every move, turning sell pressure into sharp air pockets.

This story is an excerpt from the Unchained Daily newsletter.

The liquidation tally tells the story. More than $2.5 billion in leveraged long positions were wiped out as clustered stops triggered one after another. QCP Capital noted that the break below $80,000 reignited deleveraging at a time when sentiment was already fragile from persistent ETF outflows and tighter financial conditions.

One psychological level didn’t hold. Bitcoin’s drop pushed it below the average cost basis of Michael Saylor’s Strategy, which sits near $76,000. For the first time in years, that widely watched line flipped from perceived support into resistance. 

While Strategy faces no margin calls and isn’t forced to sell, the breach highlights how much thinner the buffer has become as its equity premium evaporates.

“Price action remains fragile. Momentum continues to point lower and upside remains constrained near recent resistance levels, leaving markets exposed to further liquidation-driven moves. In this context, selectively managing downside risk remains prudent,” QCP wrote.