SKN | Bitcoin, Ether and Major Tokens Stage Relief Rally After Weekend Bloodbath

Key Points

Bitcoin and major cryptocurrencies rebounded over the past 24 hours after a steep weekend sell-off that drove prices to multi-month lows and triggered heavy derivatives liquidations.

CF Benchmarks analysts say the decline may have completed a bearish sequence that began with the October 2025 deleveraging event, leaving bitcoin at a critical inflection point near its April lows around $74,000.

The sell-off has been linked to U.S. regulatory uncertainty and a more hawkish Federal Reserve outlook, even as Asian equities and precious metals recovered and helped stabilize broader risk sentiment.

Relief Rally Follows Sharp Weekend Capitulation

Bitcoin and major cryptocurrencies rebounded in the past 24 hours after a brutal weekend sell-off that pushed prices to multi-month lows and flushed billions of dollars from leveraged derivatives positions.

Bitcoin was trading just under $79,000 during Asian morning hours, recovering from weekend lows near $74,000. Ether climbed above $2,340, while Solana, BNB, XRP and Cardano posted gains of roughly 3% to 6% over the past day. Despite the bounce, most large-cap tokens remain sharply lower on a seven-day basis, with losses approaching 20% in some cases.

The rebound follows a broad capitulation across crypto markets, characterized by thin liquidity, forced selling and aggressive long liquidations as prices broke below key technical levels.

October Deleveraging Still Casting a Shadow

According to CF Benchmarks, the weekend sell-off may mark the completion of a bearish sequence that began with the October 10, 2025 deleveraging event, when excessive leverage was first flushed from the system.

“Bitcoin has completed the bearish sequence that began with the October 10 deleveraging event, with the recent washout retesting — and briefly undercutting — the April 2025 ‘Liberation Day’ lows around $74,000,” said Gabe Selby, head of research at CF Benchmarks.

He added that the latest drop was accompanied by massive long liquidations, exacerbated by risk-off sentiment and mixed earnings signals from U.S. technology companies. With April lows now tested, Selby said bitcoin has reached a clear inflection point where market structure could either stabilize or deteriorate further.

Regulation and Fed Policy Remain Key Overhangs

Analysts continue to link bitcoin’s weakness to unresolved regulatory uncertainty in the United States, including stalled progress on crypto market structure legislation, as well as early signs of a more hawkish repricing around Federal Reserve policy.

In contrast, recent pullbacks in gold and silver were seen as driven more by crowded positioning after sharp rallies than by shared macro stress, underscoring how crypto-specific factors are weighing more heavily on digital assets.

Broader Markets Offer Temporary Support

Elsewhere, Asian equity markets staged a strong rebound after their sharpest sell-off in over two months. The MSCI Asia Pacific Index jumped 2.4%, its strongest session since April’s “Liberation Day” rebound, while South Korean equities surged more than 5%.

U.S. equity futures edged higher following upbeat guidance from Palantir, offering some relief to global risk sentiment. However, uncertainty around Federal Reserve leadership and policy direction continues to cap enthusiasm.

For crypto markets, the relief rally suggests selling pressure has eased for now, but analysts warn that sustained upside will likely depend on clearer regulatory signals and improving liquidity conditions rather than short-term rebounds from oversold levels.