Crypto Black Monday Kicks Off After $1 Billion Was Liquidated Over the Weekend

Industry players have labeled today, April 7, the crypto black Monday, a sentiment drawing from the bloodbath over the weekend.

Over the past two days, over $1 billion in long and short positions were wiped out by the weekend volatility.

Crypto Black Monday After Weekend Bloodbath

Data on Coinglass shows up to $116.59 million worth of positions were liquidated on Saturday, April 5. This comprised $33.02 million and $83.57 million in short and long positions, respectively.

The next day, the volume of traders and investors blown out of the water increased as crypto liquidations came in over $850 million. Like the day before, the lion’s share of these liquidations was long, at $743.115 million, against $107.881 million short positions.

“In the past 24 hours, 320,444 traders were liquidated, the total liquidations come in at $985.82 million,” Coinglass noted.

Crypto liquidations over the weekend. Source: CoinGlass

This volume of liquidations has fueled widespread pessimism across the crypto market. Data on CoinGecko shows the total crypto market cap is down by over 10% to $2.5 trillion.

Among the crypto top 10, XRP price is leading the crash, down by over 15.4% to trade for $1.7 as of this writing. Likewise, Ethereum’s price was down by 14.3%, selling for $1,480 at press time.

Analysts on X (Twitter) are buzzing about the potential for a historic crash reminiscent of “Black Monday.”

“Tomorrow [meaning April 7] is shaping up to be Black Monday 2.0,” analyst Maine remarked.

“Black Monday” refers to a significant and sudden stock market crash on October 19, 1987. That day, major stock indices worldwide plummeted, with the Dow Jones Industrial Average (DJIA) in the United States dropping by 22.6%. This marked its largest single-day percentage decline in history.

Against this backdrop, panic ensued as trading volumes overwhelmed markets. The lack of mechanisms to pause trading during extreme volatility allowed the free-fall to continue unchecked.

Following the massive liquidations, data on Google Trends shows global “black Monday” searches at peak levels.

Black Monday searches. Source: Google Trends

“Bearish sentiment is arguably near its highest levels in history,” The Kobeissi Letter remarked.

Panic Week: What’s Behind Crypto Black Monday?

The renowned market commentary attributed the gloom to uncertainty surrounding proposed tariffs, describing “Black Monday” as the consensus view. Based on this, analysts at The Kobeissi Letter predict “short-term capitulation” this week.

“Down then up,” analysts wrote, hinting at a volatile but potentially rebounding market.

This sentiment aligns with the AAII Sentiment Survey, which reported a striking 61.9% bearish outlook. Notably, this is double its historical average of 31.0%.  

“Black Monday 2.0,” TheMaineWonk warned.

AAII Sentiment Survey. Source: The Kobeissi Letter on X

Analyst Duo Nine supports this supposition. He warns that Trump tariffs could dismantle global supply chains, reduce productivity, and lead to a prolonged bear market for crypto. However, he believes this could last 1-2 years if a recession hits.

“If the US does not make a U-turn soon, then the only conclusion is that this is intentional and the damage will only increase with time. Unfortunately, for crypto, this means the start of a prolonged bear market. It can last 1-2 years or more if a global recession starts,” Duo None explained.

While tariff fears dominate, contrarian investors might view the extreme pessimism as a buying signal. This perception is based on the assumption that when such dire predictions become mainstream, the market bottom may be near. Such a move would offer opportunities amid peak fear.

Not everyone agrees with the apocalyptic tone. Ryan Wollner, founder of Pearpop, urged caution against overblown narratives on X. He also dismissed comparisons to the 1987 crash.

“I think we might only be looking at a 2-3 week transition, and then we will see people buying back in once the tariffs are more understood, “Wollner said.

Wollner suggested savvy traders could profit by selling now and buying low soon. He emphasized that unlike past recessions driven by fraud, this downturn reflects a temporary shift, with funds likely flowing to US companies and tariff-favored nations.  

Bitcoin (BTC) Price Performance. Source: BeInCrypto

BeInCrypto data shows Bitcoin is down by nearly 8% in the last 24 hours to trade for $77,030 as of publication time.

As markets brace for turbulence, opinions remain between impending doom and opportunistic rebounds.

The post Crypto Black Monday Kicks Off After $1 Billion Was Liquidated Over the Weekend appeared first on BeInCrypto.