Bitcoin Suffers Sudden 5% “Sunday Slam” as Leverage Wipeout Triggers $539M in Liquidations

A Sharp Weekend Drop Hits the Crypto Market

Bitcoin faced a sudden jolt in weekend trading, plunging almost 5% to $86,950 during what traders are calling a “Sunday slam.”

The rapid downturn sparked $539 million in liquidations, according to data from CoinGlass, and capped off Bitcoin’s worst November since 2018.

More than 180,000 traders were caught in the liquidation cascade over the past 24 hours, with nearly 90% of the wiped-out positions being longs—primarily in Bitcoin and Ether.

Leverage Unwinds Fuel the Flash Crash

Analyst Adam Kobeissi attributed the violent drop to a surge in selling pressure that quickly snowballed across derivatives markets.

He described the move as a “sudden rush of selling volume” that triggered a domino effect of forced liquidations, amplified by historically high leverage in the system.

Despite the dramatic move, Kobeissi emphasized that the downturn appears structural rather than fundamentally bearish.

November Ends on a Sour Note

Bitcoin’s latest dip punctuated a difficult month. The asset closed November down 17.49%, recording its weakest monthly performance of 2024—and its harshest November since the brutal 2018 bear market, when BTC fell 36.57%.

The decline erased several weeks of gradual gains and positioned the market for heightened volatility entering December.

Analysts Say the Pullback May Be Healthy

Not all analysts view the downturn negatively.

Market commentator Sykodelic suggested the move could be setting up a healthier market structure, noting that:

• The CME gap has already been filled

• Over $400 million in long positions were cleared out

• Downside liquidity was taken first, which he considers a constructive reset for bullish continuation

Despite the weekend shock, some traders argue the cleanup of excessive leverage may help stabilize price action heading into the new month.

Conclusion: Painful—but Potentially Productive—Market Reset

Bitcoin’s weekend slide delivered significant pain to leveraged traders, but analysts remain divided on whether the drop signals deeper weakness or simply a needed reset.

With leverage flushed, CME gaps closed, and downside liquidity targeted, the stage may be set for a more orderly market—though volatility is likely to remain high in the short term.

See all our insights: Bitcoin World News