Analyst Explains Why Bitcoin Dumped to $65K on Saturday: Details
Bitcoin plunged from $81,000 to under $65,000 over the weekend, with analysts attributing the sharp decline to excessive leverage rather than large-scale whale dumping.
The cryptocurrency market has been in a downward spiral for over a week, with bitcoin's value dropping from $81,000 to just under $65,000 as of Saturday. The most recent decline occurred during the weekend, a period typically characterized by minimal market movements in the absence of major events.
Popular analyst Ted Pillows provided insight into the potential causes of this weekend's crash, addressing speculation that large players might have been dumping their holdings.
Leverage Liquidations
Contrary to theories of major sell-offs, Pillows found no evidence of significant transactions exceeding $50 million or large deposits to exchanges. Instead, he pointed to excessive leverage as the primary driver of the decline.
So this is forced selling, not whales dumping.
Pillows highlighted that $200 million was liquidated in a single hour as bitcoin dipped below $66,000, with total liquidations reaching over $500 million on Saturday alone. Nearly all of these liquidations (94%) came from long positions.
Stablecoin Outflow
Another concerning factor identified by analyst Crypto Rover is the rapid disappearance of liquidity from the market. On-chain data shows the market lost almost $9 billion worth of stablecoins during the latest downturn, a 4.86% decrease that accompanied bitcoin's 24-25% drop.
This stablecoin outflow is particularly alarming when compared to previous market declines. In May 2026, when bitcoin fell over 30%, stablecoin market cap decreased by 3.70%. During January's 38.42% bitcoin crash, the same metric shrank by less than 2%.
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