The total liquidation figure, which includes both BTC and altcoins, reflects the volatility and leverage that continues to define crypto markets, especially during low-volume weekends.
Shorts Take the Lead as Sentiment Turns Bearish
Traders appear to be shifting their stance on Bitcoin. The long-to-short ratio dropped to 0.89, indicating that short positions now outnumber longs. Roughly 53% of market participants are betting on further downside, as cautious sentiment spreads across trading desks.
That bearish shift comes on the heels of Bitcoin’s weakest first quarter since 2014. BTC ended Q1 2025 down 11.7%, following a series of macro-driven setbacks and technical rejections near key resistance levels.
Macro Pressures Stack Up
The crypto sell-off didn’t happen in isolation. Traditional financial markets also pulled back sharply last week. Major U.S. indices—including the Nasdaq 100, S&P 500, and Dow Jones—fell into correction territory. It marked their worst weekly showing since the pandemic-fueled chaos of 2020.
Traders are responding to a cocktail of uncertainty: rising geopolitical tensions, inflationary risks, and policy concerns surrounding former President Trump’s proposed trade tariffs. These economic pressures are stirring fear of stagflation—a scenario where inflation climbs even as growth slows.
Crypto Market Cap Dips, But Bitcoin Still Leads
Despite the weekend turbulence, Bitcoin continues to dominate the digital asset landscape, holding roughly 62% of total crypto market share. Ethereum maintains second place with 8%.
The overall market cap dropped 2.45% on Sunday, bringing the total valuation down to approximately $2.59 trillion. While Bitcoin dipped below $80K, the broader trend shows that price action is still closely tied to global liquidity shifts and macroeconomic developments.
What to Watch This Week
With U.S. markets set to reopen, traders are bracing for continued volatility. Eyes are on potential responses from the Federal Reserve, especially after Chair Jerome Powell warned about the inflationary risks of increased tariffs. Any additional macro disruptions could serve as catalysts for the next leg of market movement.
Bitcoin’s performance early this week may provide clues as to whether the recent pullback is a temporary shakeout or a sign of deeper correction ahead.
